Final answer:
The dissolution of Eastside Physicians, a medical clinic and limited partnership, leads to the termination of Eastside's legal existence. The process involves liquidation of assets and settling of debts. General partners have unlimited liability, while limited partners' liability is restricted to their investment.
Step-by-step explanation:
When Eastside Physicians, a medical clinic and limited partnership is dissolved, its assets are collected, liquidated, and distributed. This process directly leads to the termination of Eastside's legal existence. Upon dissolution, a formal winding up of business affairs ensues, including the liquidation of assets to pay creditors and distribution of the remaining assets to partners. Dissolution triggers the ending of the partnership's legal ability to operate as a business entity.
Despite the dissolution of the partnership, the general partner and limited partners have differing levels of liability. A general partner like Brad may still have obligations because of the unlimited liability nature of general partnerships, where partners are responsible for the business's debts and actions of their co-partners. In contrast, Carlos and Dora, as limited partners, have their liability limited to their investment in the company. They're not obligated on a personal level beyond their initial investment unless they've engaged in managing the business.