az-104 Practice Question 696

Exam: az-104
Domain: Manage Azure identities and governance
Topic: Describe Azure identity, access, and security
Difficulty: medium
You have a Microsoft Entra ID (Azure AD) tenant named contoso.onmicrosoft.com that contains 100 user accounts. You purchase 10 Microsoft Entra ID Premium P2 licenses for the tenant. You need to ensure that 10 users can use all the Microsoft Entra ID Premium features. What should you do?

Answer Options

A
From the Licenses blade of Azure AD, assign a license
B
From the Groups blade of each user, invite the users to a group
C
From the Azure AD domain, add an enterprise application
D
From the Directory role blade of each user, modify the directory role

Correct Answer

A: From the Licenses blade of Azure AD, assign a license

Explanation

The correct answer is A: From the Licenses blade of Azure AD (Microsoft Entra ID), assign a license. Detailed Explanation: • Why A is correct: In Microsoft Entra ID (formerly Azure AD), features included in Premium P1 and P2 tiers require active license assignment. To grant 10 users access to all Azure AD Premium P2 features (such as Privileged Identity Management and Identity Protection), an administrator must navigate to Microsoft Entra admin center / Azure portal > Billing / Licenses > All products, select the Azure AD Premium P2 license plan, and assign the licenses directly to the 10 target user accounts (or configure group-based license assignment). • Why B is incorrect: The Groups blade on an individual user profile allows adding that user to security groups, but simply adding users to a group does not activate Premium features unless group-based licensing has already been pre-configured on that group. • Why C is incorrect: Adding an enterprise application configures single sign-on (SSO) and access permissions for SaaS or internal applications; it does not assign user-level Azure AD Premium tenant feature licenses. • Why D is incorrect: Directory roles (such as Global Administrator or User Administrator) define administrative privileges within the directory, but they do not assign product licenses. Administrators and users alike still require assigned licenses to use Premium P2 capabilities. Official Reference: Microsoft Learn: Assign or remove licenses in the Microsoft Entra admin center https://learn.microsoft.com/en-us/entra/identity/users/licensing-groups-assign Verification Date: October 2026.