Collaborative arrangements are popular among businesses because they provide a way to conduct business activities without forming a separate entity jointly. This arrangement is often used when two or more companies want to work together on a project or venture but don't want to go through the hassle and expense of setting up a new company. In a collaborative arrangement, the participants agree to share resources, responsibilities, and profits (or losses) from the venture. This type of arrangement can be very beneficial for all parties involved, as it allows them to pool their resources and expertise to achieve a common goal. While collaborative arrangements don't have the same legal status as a formal joint venture, they can still benefit all parties involved.