Question 1mediummultiple choice
Full question →mediummultiple choiceObjective-mapped
A company wants to ensure that all new users created in Microsoft 365 are automatically assigned a specific set of licenses based on their department. The company has 200 users across Sales, Marketing, and IT departments. Each department uses different Microsoft 365 license plans. Which approach should the administrator use?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
A
Distractor review
A: Create a PowerShell script that runs on a schedule to assign licenses based on department attribute.
While possible, this is less efficient and more error-prone than a built-in automatic method.
B
Distractor review
B: Use group-based licensing and assign each department's users to a security group with the appropriate license.
This requires manually adding users to groups, which does not meet the automatic requirement.
C
Best answer
C: Use Azure AD Dynamic Groups to automatically add users to groups based on department, and then assign licenses to those groups.
Dynamic groups combined with group-based licensing provide fully automatic license assignment based on user attributes.
D
Distractor review
D: Manually assign licenses to each user after creation.
Manual assignment does not scale and is not automatic.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Related practice questions
Related MS-102 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A company recently added the custom domain 'contoso.com' to their Microsoft 365 tenant. Users report that they cannot receive external email sent to their new domain addresses. The administrator confirmed that the domain status shows 'Active' in the Microsoft 365 admin center. What is the most likely cause of this issue?
Question 2
A company has 500 users across Sales, Marketing, and IT departments. User objects are synced from on-premises Active Directory to Microsoft Entra ID using Azure AD Connect. Each department requires different Microsoft 365 license plans (e.g., Sales needs E3, Marketing needs Business Premium, IT needs E5). The administrator wants to automatically assign the appropriate license based on the department attribute without manual intervention. Which approach should the administrator use?
Question 3
A company has purchased 1000 Microsoft 365 E5 licenses and wants to automatically assign licenses to users based on their department attribute, which is synchronized from on-premises Active Directory. The department attribute is stored in Azure AD. Which automated method should the administrator use to achieve this?
Question 4
A company has just purchased Microsoft 365 Business Standard and added the custom domain 'fabrikam.com' to the tenant. They want to verify domain ownership. Which DNS record type must they add to their DNS provider?
Question 5
A company plans to migrate their email from an on-premises Exchange server to Exchange Online. They want to ensure that during the migration, mail sent to users who have already been migrated is delivered to Exchange Online, while mail for non-migrated users is delivered to on-premises. Which type of domain configuration should they use?
Question 6
A company has registered the custom domain 'contoso.com' and wants to host email for the subdomain 'sales.contoso.com' in Exchange Online. They have already verified the root domain. What additional step is required?
FAQ
Questions learners often ask
What does this MS-102 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: C: Use Azure AD Dynamic Groups to automatically add users to groups based on department, and then assign licenses to those groups. — The recommended approach for automatic license assignment based on department is to use Azure AD Dynamic Groups to automatically include users based on their department attribute, and then assign licenses to those groups using group-based licensing. This is fully automatic and scalable.
What should I do if I get this MS-102 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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