Final answer:
The statement that buying a practice replaces the existing doctor is false. Acquiring a medical or dental practice involves the business entity, not necessarily the employment status of the previous practitioner, who may stay or leave depending on the terms of the sale.
Step-by-step explanation:
When a student asks if buying a practice replaces the existing doctor, the answer is B) False. The statement assumes that the transfer of ownership automatically implies the replacement of the previous practitioner, which is not always the case. When one buys a medical or dental practice, they are acquiring the business entity, client list, equipment, and possibly the location. However, the existing doctor may have negotiated to stay on for a period of time, either to assist with the transition or to continue practicing in some capacity. Alternatively, the existing doctor may decide to retire or move on immediately after the sale.
The transition plan is often a crucial component of practice sales and can be structured in various ways to meet the needs and desires of both the buyer and the seller. Understanding the terms of the sale and any employment agreements is key for anyone considering the purchase of a practice.