What action must a licensee take when their business is discontinued?

When a licensee's business is discontinued, it is essential to notify the department and return the license and identification cards immediately. This ensures that the regulatory body is aware that the licensee is no longer operating under their license, which helps maintain accurate records and uphold the integrity of the licensing system. Returning the license and identification cards signifies that the licensee is no longer authorized to engage in the activities for which the license was issued, thereby preventing any potential misuse of the license during the period of discontinuation.

In the context of the other options, notifying the department and selling business assets alone doesn't fulfill the requirement to return the license, as the primary obligation is to formally notify the department about the discontinuation while also ensuring all materials associated with the license are returned. Continuing to operate under a license after the business has been discontinued is not permissible and could lead to regulatory repercussions.