Changing Apple ID - what happens to apps?

We want to change our Apple ID on one of our devices - my boss is passing one of his iPads to his kids - to ensure that the apps are not synced between the bosses main device and the children's device.
What happens to the apps currently on the device? He bought some apps specifically for the kids using the shared ID, and he's wondering if he'll have to make another purchase.

Apps are always tied to the ID that was used to purchase them. If you change Apple ID's, you will have to purchase them again with the new ID.
The apps will remain on the iPad and you can continue to use them, but if you want to update them, you will have to use the old ID for that.
I don't know of that answers your question, because I don't get the correlation between what "we are changing an Apple ID on one of our devices" and "the boss is giving one of the iPads to his kids". I must be missing something in your explanation.

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