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The establishment license is automatically cancelled if there is a change in which of the following?

  1. Management or staff

  2. Ownership or location

  3. Services offered or pricing

  4. Facility condition or equipment

The correct answer is: Ownership or location

The establishment license in the context of mortuary science is particularly sensitive to changes that reflect the core structure and commercial identity of the establishment. When there is a change in ownership, it indicates a new entity is operating the funeral home, which can fundamentally alter aspects like control, compliance with regulations, and adherence to industry standards. Similarly, if the location changes, it can affect zoning laws, building codes, and service delivery, which are all critical to maintaining a valid establishment license. In contrast, changes in management or staff might impact the day-to-day operations of the funeral home, but they typically do not necessitate the cancellation of the license, as the ownership remains the same. Changes in services offered or pricing likewise do not inherently affect the license, as they are generally within the operational discretion of the establishment. Lastly, while facility condition or equipment can impact service quality and safety, they do not automatically result in license cancellation unless they violate specific regulations that would warrant such action. Therefore, the nature of changes in ownership or location deeply influences the legal standing of an establishment's license, making it a key factor in licensing rules.