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Actual exam question from Microsoft's SC-300
Question #: 1
Topic #: 1
[All SC-300 Questions]

You have an Azure Active Directory (Azure AD) tenant that contains the following objects:
✑ A device named Device1
✑ Users named User1, User2, User3, User4, and User5
✑ Groups named Group1, Group2, Group3, Group4, and Group5
The groups are configured as shown in the following table.

To which groups can you assign a Microsoft Office 365 Enterprise E5 license directly?

  • A. Group1 and Group4 only
  • B. Group1, Group2, Group3, Group4, and Group5
  • C. Group1 and Group2 only
  • D. Group1 only
  • E. Group1, Group2, Group4, and Group5 only
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️

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sezza_blunt
Highly Voted 3 years, 6 months ago
There is not enough information in the question to provide a 100% correct answer. You can assign licences to any group created within the Azure AD portal. These can include security groups, Microsoft 365 groups, and either assigned or dynamic groups. You can even create a dynamic device security group and assign E5 licences to it, which doesn't make sense but is true (I've tested it). However, the missing bit of information is whether the Microsoft 365 groups have the "SecurityEnabled" attribute set to True. Only M365 groups that have the "SecurityEnabled" attribute set to True can have licences assigned to them. If the group is created in the M365 Admin Centre, then the "SecurityEnabled" attribute is set to False and you can not assign licences to the group. But if the M365 group is created in the Azure AD portal, then the "SecurityEnabled" attribute is set to True and you can assign licences. For the answer, I would make an assumption that because this is an Identity-related exam testing us on Azure AD topics, that the M365 groups were created in the Azure AD portal and therefore have the "SecurityEnabled" attribute set to True. Which means the correct answer is B - all groups.
upvoted 87 times
Acbrownit
3 months ago
The "SecurityEnabled" attribute isn't set to true by default, and devices can only be licensed with the Desktop App license. So Group 1 and 2 are the "most correct" answer and MS likes to put in these "most best good answer" questions because they think they demonstrate a more thorough knowledge base for test takers.
upvoted 1 times
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klayytech
7 months, 3 weeks ago
Microsoft does allow licenses to be assigned to device groups. This is particularly useful for devices that are shared by many users, such as in a classroom or a kiosk. When a device has a license, anyone who uses that device can use Microsoft 365 Apps for enterprise2 https://learn.microsoft.com/en-us/deployoffice/device-based-licensing
upvoted 1 times
Acbrownit
3 months ago
The apps for enterprise license covers only the Desktop installed apps for Office. The question here is asking specifically about E5 licenses, as rick mentioned, which means you have to assign the license to users.
upvoted 1 times
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rick_leye2
3 months, 1 week ago
Yes but the license here is MS 365 E5
upvoted 1 times
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tamisius
2 years, 12 months ago
I have tried as well and could add all the groups. The answer is B. We don't have much informations so it is difficult...
upvoted 3 times
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TJ001
2 years, 10 months ago
Agree - the licenses can be applied to all groups created in Azure AD via portal.
upvoted 3 times
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Beitran
Highly Voted 3 years, 7 months ago
Wrong, you can assign licenses to Microsoft 365 groups as well. The correct answer is E
upvoted 20 times
Shaz
3 years, 7 months ago
The answer is correct, there's only the two groups *users not devices* that marked as security.
upvoted 7 times
Borbz
3 years, 5 months ago
By default, M365 groups are marked as SecurityEnabled=True so they are considered security groups as well. therefor I think "Beitran" is correct and the answer is E.
upvoted 6 times
researched_answer_boi
2 months, 2 weeks ago
Correct, E https://docs.microsoft.com/en-us/graph/api/group-post-groups?view=graph-rest-1.0&tabs=http Set to true for security-enabled groups, including Microsoft 365 groups. Required. Note: Groups created using the Microsoft Azure portal always have securityEnabled initially set to true. https://docs.microsoft.com/en-us/azure/active-directory/enterprise-users/licensing-group-advanced The feature can only be used with security groups, and Microsoft 365 groups that have securityEnabled=TRUE.
upvoted 4 times
Bulldozzer
2 years, 9 months ago
It is not possible to assign a license to an M365 group because this is not supported and neither are mail-enabled security groups.
upvoted 2 times
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J4U
3 years, 2 months ago
Why can't it be Group 3 for answer B. The license assignment to groups is irrespective of group membership and can be assigned to any type of security groups.
upvoted 3 times
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ATimTimm
Most Recent 22 hours, 33 minutes ago
Selected Answer: E
You cannot assign license to Dynamic Device group.
upvoted 1 times
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Mole857
3 weeks, 2 days ago
The Answer is E - you can't allocate a license to a device
upvoted 1 times
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Sakraf
1 month, 1 week ago
Selected Answer: E
If you have security groups, mail enabled groups, or Microsoft 365 groups, you can assign or unassign licenses for those groups on the Licenses page in the Microsoft 365 admin center. We refer to this as group-based licensing. https://learn.microsoft.com/en-us/microsoft-365/admin/manage/manage-group-licenses?view=o365-worldwide
upvoted 2 times
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BRZSZCL
1 month, 1 week ago
For those getting confused about Group 3. I have created a Security Group 'Dynamic Device' type and lisence attached (Microsoft 365 E5) to it, so answer B is correct, we could attached the E5 lisence directly to all groups
upvoted 2 times
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aocferreira
2 months ago
I've tested this and the most correct answer available should be C (Group1 and Group2 only). Even though MS documentation still says that licenses can be assigned to M365 groups if securityEnabled = True, it seems that's not the case anymore. I've created 2 M365 groups in Entra portal and i've confirmed fro MS Graph that these groups have the flag securityEnabled = true. However, from M365 admin centre, it's not possible to assign the licenses to these groups -> this means Group4 and Group5 are excluded. Regarding Group3, it's actually possible to assign the E5 license to a group that contains a device, even though it doesn't make much sense because this is targeted for users. Based on this, if there was an answer with Group1 Group2 and Group3 I would say it was the correct one. As we don't have it, Group1 and 2 should be correct answer -> C
upvoted 1 times
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RandomNickname
2 months, 2 weeks ago
Selected Answer: B
I'm with the B camp, however there's not enough imformation here. But, any group which is mail enable and created in AZAD has securityEnabled: true be default, allowing licenses to be added the the required groups. See: https://docs.microsoft.com/en-us/graph/api/group-post-groups?view=graph-rest-1.0&tabs=http#request-body Security and O365 groups can have group based licenses assigned, see (under, Limitations and known issues): https://docs.microsoft.com/en-us/azure/active-directory/enterprise-users/licensing-group-advanced You can assign enterprise license to devices, see: https://docs.microsoft.com/en-us/microsoft-365/commerce/licenses/manage-licenses-for-devices?view=o365-worldwide
upvoted 4 times
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w00t
2 months, 2 weeks ago
Selected Answer: B
Answer should be "B". The question is simply asking "WHICH OF THESE GROUPS CAN BE ASSIGNED A LICENSE?" The answer, is ALL OF THEM. It doesn't matter if a Device Group can't USE an E5 license. That's not the question. The question is can the group be assigned the license. The answer is yes, yes it can. I tested in my lab env with E5 licensing. ALL GROUPS CAN BE ASSIGNED AN E5 LICENSE, regardless of if that license will be used properly. Of course, a device can't be assigned E5 licensing. That license wouldn't get used if assigned to a Device Group, BUT, you can still assign it to that group. B.
upvoted 2 times
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geobarou
2 months, 2 weeks ago
Selected Answer: B
You can create a SG having devices, groups and users. So you can add a license to this group. AAD does not know if a SG has devices, groups or users. Of course the license will assigned only to the users of this group. So Group 3 is eligible. M365 groups have only users. Both groups can be assigned with a license.
upvoted 2 times
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Hot_156
2 months, 2 weeks ago
Selected Answer: B
The Membership Type and Members are just to confuse all of you. The question is "To which groups can you assign a Microsoft Office 365 Enterprise E5 license directly?" if you test this, you can assign this to any group created in Azure even groups with Azure AD roles set to yes
upvoted 1 times
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Taigr
2 months, 2 weeks ago
Selected Answer: C
This qeuestion is one of Microsoft examples and right answer there is C. But this example question is 2 years old, so who knows....
upvoted 1 times
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Garito
2 months, 2 weeks ago
Selected Answer: C
The same question appears in offical SC-300 Measureup practice exam question 22 and answer is: Group 1 and group 2 only. Offical explanations: You can not assign licens to group 3 becvause it is a device group. You can not assign licenses to device groups. You can not assign licences to group 4 and group 5. YOu can not assign licences to Microsoft 365 groups.
upvoted 7 times
Holii
1 year, 6 months ago
If this is true, then we are missing the crucial information that these groups were created in the M365 Admin Portal. If you create the M365 Group in the Azure AD portal, they will have the necessary flag permissions to be able to directly assign licenses.
upvoted 2 times
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flimarc
2 months, 2 weeks ago
E You can assign Azure AD P1 licenses to Group1, Group2, and Group 4 only. You can assign licenses to security groups containing users only or containing users and other groups. This includes both assigned and dynamic user groups. You can also assign licenses to Microsoft 365 Groups. You cannot assign Azure AD P1 licenses to Group3 because it is a device group. You cannot assign licenses to device groups.
upvoted 2 times
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sherifhamed
2 months, 2 weeks ago
Selected Answer: B
In Microsoft Office 365, you can assign licenses directly to individual users or to groups. You can assign Microsoft Office 365 Enterprise licenses directly to the following groups: Security Groups: Distribution Lists (Mail-Enabled Groups) Office 365 Groups (Microsoft 365 Groups) Azure AD Groups: Azure Active Directory (Azure AD) groups can also be used for license assignment in Office 365. Assigning licenses to Azure AD groups works similarly to security groups. Dynamic Distribution Lists: You can also use dynamic distribution lists based on user attributes to assign licenses automatically to users who meet specific criteria.
upvoted 3 times
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Davidf
2 months, 2 weeks ago
Measure up have a near identical question Group 1 - Security - assigned user Group 2 - Security - dynamic user Group 3 - Security - dynamic device Group 4 - M365 - dynamic user Which groups can you assigned Azure AD Premium P1 licenses? Answer = Group 1 and 2 only Reasoning - You can assign licenses to security groups containing users only or user and other group. This includes both assigned and dynamic user groups. You cannot assign licenses to group 3 as it is device group. You cannot assign a license to group 4. You cannot assign licenses to M365 groups. Take what you will from that.... I will probably go with them but leave a comment on the question if it comes up.
upvoted 7 times
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melatocaroca
2 months, 2 weeks ago
You can use group-based licensing with any security group, which means it can be combined with Azure AD dynamic groups. Multiple licenses for the same product can overlap, and they result in all enabled services being applied to the user Group-based licensing currently does not support groups that contain other groups (nested groups). If you apply a license to a nested group, only the immediate first-level user members of the group have the licenses applied. The feature can only be used with security groups, and Microsoft 365 groups that have securityEnabled=TRUE. The Microsoft 365 admin center does not currently support group-based licensing. If a user inherits a license from a group, this license appears in the Office admin portal as a regular user license. If you try to modify that license or try to remove the license, the portal returns an error message. Inherited group licenses cannot be modified directly on a use So, you need to use PowerShell to change Normal Office 365 group to Office 365 security enabled #Elevate Office 365 group to security group Set-AzureADGroup -ObjectId XXX -SecurityEnabled:$true
upvoted 1 times
melatocaroca
3 years, 4 months ago
You can choose what to assume, but because default is not enabled, my assumption is to discard Office 365, because they ask assign a Microsoft Office 365 Enterprise E5 license directly, and you need to commit a previous step that is set SecurityEnabled:$true Security groups can contain users or devices. Creating a security group for devices can be used with mobile device management services, such as Intune. If you have Microsoft 365 Apps for enterprise (device) or Microsoft 365 Apps for Education (device), you can assign licenses to devices by using Azure AD groups. When a device has a license, anyone who uses that device can use Microsoft 365 Apps for enterprise (previously named Office 365 ProPlus). You can assume that device will be assigned with a license, but there is no option, for Group1 and Group2 and Group3 only So, IMHO given answer C. Group1 and Group2 only
upvoted 2 times
melatocaroca
3 years, 4 months ago
The trick is directly, not if can be used or not not if can be used or not to assign licenses, you just assume defaults, Office 365 group need previous work and groups with devices as well
upvoted 1 times
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