What happens to an organization’s license when it is dissolved?

When an organization is dissolved, its license is forfeited. This means that the legal authority to operate and engage in activities that the license covered is terminated. Licenses are issued based on the functioning entity, and when the organization no longer exists, there is no entity to hold the license. Thus, forfeiture is a necessary consequence of the dissolution, as the regulatory body responsible for the licensing cannot have an inactive or nonexistent entity operating under its jurisdiction.

The other choices present inaccurate scenarios. A license cannot be automatically renewed for an additional period following dissolution because the entity is no longer in existence to request or meet renewal conditions. Placing the license on hold would imply the organization still exists in some form, which is not the case in a complete dissolution. Transferring the license to a successor would also not occur because the original entity has ceased to function; licenses typically cannot be transferred without the involved entity actively operating and meeting specific criteria.