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When a custom object has a lookup field to another object, it establishes a lookup relationship. This type of relationship is a one-to-one or one-to-many association between two objects, where one object can reference another without the strict ownership that is characteristic of a master-detail relationship.

In a lookup relationship, the related records remain independent of each other; deleting a parent record does not automatically delete the related child records. This feature provides flexibility in data modeling, as it allows for relationships that don't require the same levels of dependency and control that come with master-detail relationships.

In contrast, a master-detail relationship enforces a tighter coupling between the two objects, meaning the detail (child) record's lifecycle is tightly tied to the master (parent) record. A junction relationship is specifically used to create many-to-many relationships between two objects, and a hierarchical relationship is limited to user objects to define relationships among users. These distinctions further highlight why a lookup relationship is the appropriate choice for this scenario.