MS-102 Deploy and manage a Microsoft 365 tenant Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✗

  Run a PowerShell script to assign licenses individually

  Why it's wrong here

  Using a PowerShell script to assign licenses individually (e.g., via Set-MgUserLicense) can handle batch operations, but it is a point-in-time process that must be re-run manually or scheduled for every new user. It doesn't watch group memberships, so any joiners, movers, or leavers require custom logic and error handling. In contrast, group-based licensing provides continuous, automatic assignment and is the supported governance approach for M365 E5 at scale.

• ✓

  Configure group-based licensing in Microsoft Entra ID

  Why this is correct

  Group-based licensing in Microsoft Entra ID assigns M365 E5 licenses automatically to all users in a group, including new members added later. When a user leaves the group, the license is automatically removed, and the system logs any assignment errors (e.g., insufficient quota or conflicting service plans) in the user's object. This is the recommended and native method for managing per-user subscriptions like M365 E5 because it runs in the background and requires no manual effort once the group is configured.

• ✗

  Manually assign licenses in the Microsoft 365 admin center for each user

  Why it's wrong here

  Manually assigning licenses in the Microsoft 365 admin center for each of 500 users is conceptually straightforward but operationally impossible to maintain. Each new employee or license change requires an admin to locate the user, select an M365 E5 SKU, and save the assignment, which invites human error and consumes significant admin time. It also provides no self-healing or escalation path: license quantities, plan conflicts, or new-hire onboarding all depend on an admin remembering to act.

• ✗

  Use a volume licensing product key to activate licenses

  Why it's wrong here

  A volume licensing product key is used to activate on-premises software (e.g., Windows, Office) through VLSC, not to assign per-user Microsoft 365 service licenses. Microsoft 365 E5 subscriptions are identity-based and are provisioned to user accounts via Entra ID or the admin center; they do not consume product keys. Using a key would neither grant nor track per-user entitlements, so this is categorically the wrong mechanism for licensing 500 users.

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