Microsoft 365 Certified Endpoint Administrator (MD-102) Practice Test

How should licenses be assigned to users in Azure Active Directory?

1. Using individual user assignment

2. Using group-based licensing

3. Using third-party systems

4. Using manual processes only

The correct answer is: Using group-based licensing

Group-based licensing is an efficient method for assigning licenses to users in Azure Active Directory. This approach allows administrators to assign licenses to entire groups of users rather than managing licenses on a user-by-user basis. When a user is added to a group that has an assigned license, that user automatically inherits the license, streamlining the process of managing licenses significantly. This method is particularly beneficial for organizations with a large number of users, as it reduces the administrative overhead associated with individual licensing. If a user's role changes or if they should no longer have access to certain applications, administrators can simply remove them from the group rather than having to adjust individual license settings each time. Using individual user assignment is more labor-intensive and could lead to inconsistencies when managing large groups of users. While third-party systems can be used, they are not inherently necessary or efficient for license assignments when Azure AD offers robust built-in capabilities. Manual processes, while possible, negate the benefits of automation and scalability that group-based licensing provides. By leveraging group-based licensing, organizations can ensure better control, consistency, and efficiency in their license management practices.