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AZ-104 Practice Question 72: Group License Usage Location

Microsoft Azure Administrator Associate (AZ-104) · Test 8 · question 2 of 10

Identity & Governanceeasy

An administrator assigns a Microsoft 365 license to a Microsoft Entra security group and then adds 40 users to it. Thirty-six users receive the license, but four show a license assignment error.

What is the most likely cause?

Select one answer
Show answer and explanation

Answer:

  • C. The four users do not have a usage location set on their accounts

Some Microsoft services are not available in every country, so a license can only be assigned to a user who has a usage location. A user who has none gets an error when group- based licensing tries to assign the license. Setting the usage location on the four accounts and reprocessing the group resolves it.

Option A is wrong because group-based licensing works with assigned and dynamic groups alike.

Option B is wrong because holding an administrator role does not prevent a user from being licensed.

Option D is wrong because Conditional Access controls sign-in to apps and has no effect on whether a license is assigned to an account.

Reference: Identify and resolve license assignment problems for a group in Microsoft Entra ID

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