Texas Fire Alarm License Practice Test

Who needs to be notified of a total change in a firm's ownership?

1. The local fire department

2. The state licensing authority

3. Current employees only

4. The public

The correct answer is: The state licensing authority

A total change in a firm's ownership is a significant event that impacts the legal and regulatory status of the business. The state licensing authority must be notified because it oversees the licensing requirements and compliance for businesses operating within its jurisdiction, including fire alarm companies. Changes in ownership might affect the validity of the existing license, as licensing is often tied to the individual or entity that holds it. By notifying the state licensing authority, the firm ensures that all necessary updates and approvals are made to continue operating legally and to prevent any lapses in compliance. Other entities, like the local fire department or the public, might need to know about operational changes in general, but the primary regulatory concern falls on the state licensing authority, which must keep records current to maintain oversight of the industry. Current employees might be affected by the ownership change, but they do not hold the regulatory responsibility that the licensing authority does.