In which situation would the selling entity cover the costs of examination expenses?

The selling entity would cover the costs of examination expenses during situations involving the transfer of ownership or control. This obligation generally arises because the entity that is being sold may need to undergo a thorough examination to ensure compliance with applicable laws and regulations. The examination might be necessary to assess financial stability, operational practices, and legal compliance, which are crucial factors for the new owner in a regulatory context.

When ownership or control of a funeral establishment changes, there is often a need to evaluate the business's adherence to regulations before the transfer can be finalized. This process not only protects the interests of the new ownership but also ensures that any liabilities or non-compliance issues are addressed before the transition takes place. Thus, the selling entity typically bears the examination costs associated with this transfer to facilitate a legal and smooth transition of ownership.

In comparison, regular inspections, breach of contracts, and routine filings do not typically place the financial responsibility for examination expenses solely on the selling entity. Regular inspections are typically part of ongoing regulatory oversight and may be funded differently. Breach of contracts usually pertains to specific legal obligations and consequences, while routine filings are administrative tasks that do not specifically trigger examination expenses related to ownership transition.