Quick Answer
The answer is Microsoft Entra ID P1. This license is required because Self-Service Password Reset (SSPR) is a premium feature that relies on Azure AD Premium P1 capabilities, including group-based licensing and conditional access policies, to function correctly. Entra ID Free lacks SSPR entirely, while Entra ID P2, though it includes SSPR, is overkill for this specific need. On the MS-102 exam, this question tests your ability to distinguish between licensing tiers for core identity features; a common trap is assuming P2 is necessary for all security features or confusing SSPR with Privileged Identity Management. Remember that SSPR is a P1 feature, while P2 adds Identity Protection and PIM. A simple memory tip: “P1 for passwords, P2 for protection.”
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are configuring Microsoft Entra ID for a new organization. You need to ensure that users can self-service reset their passwords. Which licensing is required?
Microsoft Entra ID Free
Why wrong: Free tier supports SSPR for cloud users but does not include password writeback for on-premises users.
Microsoft Entra ID P2
Why wrong: P2 includes SSPR but is not the minimum license required.
Microsoft Entra ID P1
P1 includes SSPR and password writeback for on-premises users.
Microsoft 365 Business Basic
Why wrong: Business Basic does not include Microsoft Entra ID P1 features.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra ID P1
Microsoft Entra ID P1 includes the Self-Service Password Reset (SSPR) feature, which allows users to reset their own passwords without administrator intervention. This licensing tier provides the necessary Azure AD Premium P1 capabilities, such as group-based licensing and conditional access, that underpin SSPR. Entra ID Free does not include SSPR, and Entra ID P2, while also including SSPR, is not required for this functionality.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Microsoft Entra ID Free
Why it's wrong here
Free tier supports SSPR for cloud users but does not include password writeback for on-premises users.
Microsoft Entra ID P2
Why it's wrong here
P2 includes SSPR but is not the minimum license required.
Microsoft Entra ID P1
Why this is correct
P1 includes SSPR and password writeback for on-premises users.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft 365 Business Basic
Why it's wrong here
Business Basic does not include Microsoft Entra ID P1 features.
Common exam traps
The trap here is that candidates often confuse SSPR availability with Microsoft 365 Business Basic, assuming it includes premium features, or mistakenly think only Entra ID P2 can provide SSPR, overlooking that P1 is sufficient.
Detailed technical explanation
SSPR relies on the Azure AD Password Reset service, which uses a registration process where users provide authentication methods (e.g., phone, email, security questions) stored in the directory. Under the hood, SSPR enforces password writeback to on-premises Active Directory when using Azure AD Connect, requiring Azure AD Premium P1 or P2. In a real-world scenario, an organization with Entra ID P1 can enable SSPR for cloud-only users, but for hybrid users, password writeback also requires Azure AD Connect with the appropriate permissions.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
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FAQ
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Entra ID P1 — Microsoft Entra ID P1 includes the Self-Service Password Reset (SSPR) feature, which allows users to reset their own passwords without administrator intervention. This licensing tier provides the necessary Azure AD Premium P1 capabilities, such as group-based licensing and conditional access, that underpin SSPR. Entra ID Free does not include SSPR, and Entra ID P2, while also including SSPR, is not required for this functionality.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This MS-102 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MS-102 exam.
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