What action must be taken before a change in ownership to continue business?

What action must be taken before a change in ownership to continue business?

• A. Renew current certificate
• B. A new application for a new certificate
• C. Change ownership without notification
• D. File a transfer form

Answer: (B)

When a business holds a license or certificate, that authorization is issued to the current owner. A change in ownership does not automatically carry over the existing license. To continue operating legally, the new owner must undergo the licensing process again and obtain a new certificate in their name. This ensures the new owner meets all requirements and that the license is properly reissued for the new ownership. Renewing the old certificate would keep the current owner, not the new one. Changing ownership without notification is not permissible and would create compliance problems. Filing a transfer form might be part of some processes, but it alone does not replace the need for a fresh certificate issued to the new owner.

When a business holds a license or certificate, that authorization is issued to the current owner. A change in ownership does not automatically carry over the existing license. To continue operating legally, the new owner must undergo the licensing process again and obtain a new certificate in their name. This ensures the new owner meets all requirements and that the license is properly reissued for the new ownership.

Renewing the old certificate would keep the current owner, not the new one. Changing ownership without notification is not permissible and would create compliance problems. Filing a transfer form might be part of some processes, but it alone does not replace the need for a fresh certificate issued to the new owner.