Final answer:
The correct status for a cosmetology license when a licensee stops practicing is 'Inactivity'. This reflects a voluntary choice without disciplinary connotations and allows for future reactivation.
Step-by-step explanation:
When a licensee has ceased performing cosmetology and no longer needs to maintain an active license, the license may be placed in a status that reflects this change. The correct term for this status is inactive, which suggests the licensee is not currently engaged in professional activities related to their licensed field but retains the ability to reactivate the license in the future if needed. Therefore, the answer to the question is Option 4: Inactivity.
Options such as Dormancy, Suspension, or Abeyance may not accurately describe the voluntary decision to cease professional activities without the connotation of disciplinary action or obligation to take further measures to maintain the license.