Final answer:
A joint venture is a functional arrangement in which two or more firms come together to reduce the financial risks associated with a project by pooling their resources and expertise.
Step-by-step explanation:
A functional arrangement in which two or more firms want to reduce the financial risks associated with a project is known as a joint venture. In a joint venture, the participating firms pool their resources and expertise to undertake a specific project or business venture. This allows them to share the costs, risks, and rewards associated with the project.