How many Office 365 E3 licenses are assigned?

Your company has a Microsoft Azure Active Directory (Azure AD) tenant named contoso.com that includes the users shown in the following table.

Group2 is a member of Group1. You assign a Microsoft Office 365 Enterprise E3 license to Group1.

How many Office 365 E3 licenses are assigned?
A . 1
B . 2
C . 3
D . 4

View Answer

Answer: C

Explanation:

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. Therefore, User2 will not be assigned a license.

When Azure AD assigns group licenses, any users without a specified usage location inherit the location of the directory. Therefore, User3 will be assigned a license and his usage location will be set to the location of the directory.

Reference: https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-groups-assign https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-group-advanced