Journal

InstitutionAffiliation:

Assignmentoccurs when an initial party to the contract shifts the rights andduties of the contract to another party. An entity can assign theentire contract, suggesting that the party assigns both the rightsand the obligations of the contract. The delegation, on the contrary,involves only a segment of the contract. With delegation, aparticular contractual function or activity is transferred. It meansthat the obligation if shifted, but no rights transferred. In Anassignment both delegation and assignment, there is the originalparty to the contract and is mandated to do something under the termsof the contract.

Thethree major forms of businesses include sole proprietorship,partnership, and corporation. A sole proprietorship is a businessformed and owned by only one person. It is easy to start-up, lesscostly and the owner has a limited liability which means creditorscan go after owner’s assets if the business is unable to pay debts.A partnership is a form of business held by two or more people whosupply resources to the organization. All partners have limitedliability. A limited partnership means that creditors cannot usepersonal assets of the partners to pay debts owed to them by thebusiness. Lastly, corporations is a form business whereby ownershiprepresented regarding shares, and it has aseparate legal entityfrom its owners. The stockholders enjoy limited liability but havechecked involvement in the organization’s operations that arecontrolled by the board of directors.

Thedissolution of partnership would occur upon expressing the will towithdraw, bankruptcy or death. Dissolution of partners results toeither winding up of the business, a buyout of the dissociatedpartner`s or a dissolution[ CITATION Chr15 l 1033 ].General partnership is whereby all partners participate in theday-to-day activities of the organization while limited partnershiphas at least one general partner who runs daily operations and issolely liable for business debts.

References

Chris, L. (2015). Entrepreneurial finance. Stamford, CT, USA: Cengage Learning.