Which of the following is a requirement for the equitable distribution of partnership assets upon dissolution?

The requirement for the equitable distribution of partnership assets upon dissolution is that all debts must be paid first. This principle is grounded in the legal framework for partnerships, which mandates that a partnership must settle its obligations prior to any distribution of remaining assets to the partners.

When a partnership is dissolved, the procedure typically begins with the payment of all outstanding debts and liabilities, which can include loans, vendor payments, and any other financial obligations. This ensures that all creditors are satisfied before any assets are allocated to the partners based on their ownership interests or agreements.

If debts were not paid first, partners could unfairly benefit at the expense of the partnership’s creditors, leading to potential legal disputes or personal liability for the partners. Therefore, prioritizing debt repayment is a crucial step in the dissolution process, ensuring an orderly and equitable distribution of any remaining partnership assets after all obligations have been met.

The other options do not reflect the legal requirements for asset distribution. Immediate liquidation is not always necessary and can depend on the circumstances of the dissolution. A distribution plan does not require unanimous approval from all partners by law, and the distribution does not have to favor the least involved partner; rather, it should respect the partnership agreement and interests of all partners.