Which term describes a formal agreement that governs information exchange between two organizations?

• A. Collaboration
• B. Contract
• C. Partnership
• D. Interchange

Answer: (C)

A formal arrangement between two organizations to exchange information is a partnership. This term implies an ongoing relationship with shared goals and governance, where both sides commit to how data will be shared, who has access, and what security and privacy controls must be followed. It goes beyond a one-time transaction or a casual meetup of efforts.

Collaborations can be informal or ad-hoc, without the structured terms and ongoing obligations you’d expect in a formal data-sharing setup. A contract, while legal and important, typically governs a specific exchange of goods or services rather than establishing a mutual framework for ongoing information exchange. Interchange isn’t a standard term for this concept. So the idea of a partnership best captures the formal, sustained agreement that governs how organizations share information.