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What happens to an establishment's license when ownership is transferred?

  1. It remains valid

  2. It is temporarily suspended

  3. It is automatically renewed

  4. It will be automatically cancelled

The correct answer is: It will be automatically cancelled

When ownership of a mortuary establishment is transferred, the establishment's license is automatically canceled. This is because licenses for funeral homes and similar establishments are typically granted to specific entities or individuals. When the ownership changes, it indicates a new entity is in control, which means they must apply for a new license to operate legally. The requirement for new ownership to obtain a new license ensures that the new owners meet all regulatory standards and qualifications needed to run the establishment according to the laws governing funeral service practice. This process helps maintain the integrity and standards of the profession. In contrast, licenses typically do not remain valid under new ownership, and they are not automatically renewed or suspended; rather, a fresh application process is initiated for compliance and oversight purposes.