Quick Answer
The answer is the License Administrator and the Billing Administrator roles. These two roles are specifically scoped to manage user licenses without creating users because Microsoft designed them with granular permissions that exclude user object creation or deletion. The License Administrator role grants access to the Billing > Licenses section and the Azure AD Licenses blade for assigning and monitoring licenses, while the Billing Administrator can also manage subscriptions and license purchases, but neither role includes the “Create users” permission under Azure AD roles. On the MS-102 exam, this question tests your understanding of least-privilege role assignments and the distinction between identity-focused roles like User Administrator and license-focused roles. A common trap is selecting the Global Administrator or User Administrator, both of which can create users. To remember, think: “Licenses only, no users—stick with Billing and License.”
This MS-102 practice question tests your understanding of manage users, groups, licensing, and support. 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.
Which TWO roles can manage user licenses without being able to create users?
License Administrator
Can assign/remove licenses.
Billing Administrator
Can manage licenses.
Global Administrator
Why wrong: Excessive privileges.
User Administrator
Why wrong: Can also create users.
Helpdesk Administrator
Why wrong: Cannot manage licenses.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
License Administrator
The License Administrator role in Microsoft 365 is specifically designed to allow users to manage licenses assigned to users and groups without having permissions to create new user accounts. This role grants access to the Microsoft 365 admin center's Billing > Licenses section and the Azure AD Licenses blade, enabling license assignment, removal, and consumption monitoring, but it explicitly excludes user creation or deletion capabilities.
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.
License Administrator
Why this is correct
Can assign/remove licenses.
Related concept
Read the scenario before looking for a memorised answer.
Billing Administrator
Why this is correct
Can manage licenses.
Related concept
Read the scenario before looking for a memorised answer.
Global Administrator
Why it's wrong here
Excessive privileges.
User Administrator
Why it's wrong here
Can also create users.
Helpdesk Administrator
Why it's wrong here
Cannot manage licenses.
Common exam traps
The trap here is that candidates often confuse the License Administrator with the User Administrator, assuming that license management inherently includes user creation, but Microsoft explicitly separates these permissions to enforce least-privilege access.
Detailed technical explanation
Under the hood, the License Administrator role is defined in Azure AD with the directory role template ID '4d6ac14f-3453-41d0-bef9-a3e0c569773a' and is scoped via delegated administration permissions on the Microsoft 365 licensing service. In a real-world scenario, a large enterprise might assign this role to a procurement team member who needs to allocate licenses from a pool (e.g., Office 365 E5) to new hires after HR creates the user accounts, ensuring separation of duties between identity provisioning and license cost management.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Manage users, groups, licensing, and support — study guide chapter
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FAQ
Manage users, groups, licensing, and support — This question tests Manage users, groups, licensing, and support — Read the scenario before looking for a memorised answer..
The correct answer is: License Administrator — The License Administrator role in Microsoft 365 is specifically designed to allow users to manage licenses assigned to users and groups without having permissions to create new user accounts. This role grants access to the Microsoft 365 admin center's Billing > Licenses section and the Azure AD Licenses blade, enabling license assignment, removal, and consumption monitoring, but it explicitly excludes user creation or deletion capabilities.
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 11, 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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