Question

Difficulty: MediumAdministrative Units and License Management

An organization has a Microsoft Entra ID tenant. You create an Administrative Unit named Operations-AU, then add all user accounts for the operations department and a security group named Operations-Group to Operations-AU. You assign a user named Admin1 the User Administrator role scoped to Operations-AU. Admin1 needs to assign Microsoft 365 E3 licenses to all operations department users. Admin1 attempts to assign the licenses to Operations-Group, but the operation fails due to insufficient permissions. Which action should Admin1 take to successfully assign the licenses to the operations department users?

  1. Assign the Microsoft 365 E3 licenses directly to the individual user accounts within Operations-AU.Answer
  2. B
    Request a Global Administrator to assign the License Administrator role to Admin1 scoped to Operations-AU.
  3. C
    Assign the Contributor role to Admin1 on the Azure subscription, then assign the licenses to Operations-Group.
  4. D
    Configure a dynamic membership rule on Operations-Group to automatically assign the licenses to its members.

Answer

Assign the Microsoft 365 E3 licenses directly to the individual user accounts within Operations-AU.
The correct action is to assign the licenses directly to the individual user accounts within Operations-AU. As a User Administrator scoped to the administrative unit, Admin1 possesses the necessary privileges to manage user accounts within that scope, including direct license assignment. However, group-based licensing requires tenant-level License Administrator or Global Administrator privileges because configuring licenses on groups affects tenant-wide directory settings, and the License Administrator role cannot be scoped to an administrative unit.

Step-by-Step Solution

1
Analyze the administrative privileges and scope of Admin1.
Admin1 is a User Administrator scoped to the Operations-AU administrative unit.
This scoped role allows Admin1 to manage user object properties—including direct license assignments—for users that are members of Operations-AU.
2
Determine the limitation preventing group-based license assignment.
Group-based license configuration requires tenant-level permissions (such as License Administrator or Global Administrator).
The License Administrator role cannot be scoped to an administrative unit, meaning Admin1 cannot assign licenses to groups.
3
Identify the direct assignment capability within the administrative unit scope.
Admin1 can assign licenses directly to individual user accounts in Operations-AU.
Since the target users are members of the administrative unit and direct license assignment is a user-level operation, the AU-scoped User Administrator role is sufficient.

Key Concept

Administrative Unit scoped roles and the distinction between direct user licensing and group-based licensing requirements.
Estimated Time:1m 30s
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