Assigning Fabric Licenses in Entra ID Free Tenant

AZ-104 By islever Editorial Last updated

Manage Microsoft Entra users and groups

Short answer

A Assign the Microsoft Fabric license only to User1 because group-based licensing is unsupported in the Entra ID Free tenant.

Question

You have a Microsoft Entra tenant configured as shown in the following exhibit. The tenant contains the identities shown in the following table. You purchase a Microsoft Fabric license. To which identities can you assign the license? - Exhibit: Assigning Fabric Licenses in Entra ID Free Tenant - Exhibit: Assigning Fabric Licenses in Entra ID Free Tenant
  1. User1 only Correct Answer
  2. User1 and Group1 only
  3. User1 and Group2 only
  4. User1, Group1, and Group2

Key Takeaways

Group-based licensing requires Microsoft Entra ID Premium P1 or P2; the Free tier restricts license assignment to individual users only.

Microsoft Entra ID Free tenants do not support group-based licensing, meaning licenses can only be assigned directly to individual users. This page establishes that without a Premium P1 or P2 license, Microsoft Fabric licenses cannot be assigned to groups.

Common mistake: Choosing B or C because one assumes security groups or M365 groups inherently support license assignment, ignoring the tenant's Entra ID Free limitation.

Expert Analysis

Why the Answer Is Correct

The correct answer is A because the exhibit indicates the Microsoft Entra tenant is using the Free edition. Group-based licensing is a Premium feature requiring Entra ID P1 or P2, so licenses cannot be assigned to any groups in a Free tenant. Therefore, the Microsoft Fabric license can only be assigned directly to User1.

Why the Other Options Are Wrong

Options B, C, and D incorrectly assume that group-based licensing is available in the current tenant. While security groups and Microsoft 365 groups can be used for group-based licensing in Premium tenants, these features are entirely unavailable in the Free tier. This makes it impossible to assign licenses to Group1 or Group2 regardless of their type.

Community Comment Notes

Several commenters correctly pointed out the Entra ID Free limitation, such as examprepboy who noted "The Entra tenant is in FREE mode, so there is no P1 or P2 assigned." Another commenter supported this by linking the official documentation, stating "Entra ID Free suppor only users asigment." Other comments suggesting options B or C fail to account for the tenant's licensing tier restricting group assignments.

Official Reference

https://learn.microsoft.com/en-us/entra/fundamentals/concept-group-based-licensing#licensing-requirements

This link opens the official vendor documentation in a new tab.

Exam Strategy

Always check the tenant's license tier (Free vs. P1/P2) before assuming group-based licensing is available. If the tenant is Free, you must select the option that only includes individual user accounts.

Community Votes

A
65%
B
35%

65% of anonymous learners picked answer A. Votes are pick records left by other test-takers — they are not the verified answer.

Discussion 13 contributions

Compiled from public community threads and reader submissions, lightly edited for clarity. Handles and vote tallies are shown as recorded, and comments reflect the views of individual contributors, not of islever. The comments shown first are the most substantive of the thread — ranked by depth, community endorsement and relevance; expand the list below to read the rest.

From public community threads 13

  1. examprepboy 👍 21 Answered A
    Correct Answer is A Only The Entra tenant is in FREE mode, so there is no P1 or P2 assigned. Without this, all licence applying abilities are done by user mode ONLY. When you get a Premium licence then you are allowed to assign by groups. Tested in my lab
  2. 6c05b3d 👍 5 Answered C
    C. User1 and Group2 only This assumes that Microsoft 365 groups are supported for license assignments, which they generally are, while security groups (Group 1) might not directly receive licenses themselves but can be used for grouping users for license assignments.
  3. Jo696 👍 5 Answered B
    I would think the answer is B, as it does not mention if Group 2 is security-enabled.
  4. [Removed] 👍 3 Answered B
    B is correct User Accounts and Security Groups in a Microsoft Entra tenant can be assigned Microsoft Fabric licenses, while Microsoft 365 groups cannot be directly licensed. To license members of a Microsoft 365 group, the licenses need to be assigned to the individual user accounts rather than the group itself.
  5. 27f57ef 👍 2
    In your tenant, you can enable Microsoft Fabric for: The entire organization - In most cases your organization has one tenant, so selecting this option enables it for the entire organization. In organizations that have several tenants, if you want to enable Microsoft Fabric for the entire organization, you need to enable it in each tenant. Specific security groups - Use this option to enable Microsoft Fabric for specific users. You can either specify the security groups that Microsoft Fabric will be enabled for, or the security groups that Microsoft Fabric won't be available for. https://learn.microsoft.com/en-us/fabric/admin/fabric-switch
Show 8 more comments
  1. amsioso 👍 2 Answered A
    Entra ID Free suppor only users asigment. https://learn.microsoft.com/en-us/entra/fundamentals/concept-group-based-licensing#licensing-requirements
  2. alsmk2 👍 2 Answered D
    I think you can assign this to all three.
  3. serbanvadi 👍 1 Answered B
    You can enable Microsoft Fabric for: Your tenant - Use this option to enable Microsoft Fabric for everyone in the tenant. A specific capacity - Use this option if you want to enable Microsoft Fabric for users in a specific capacity. In both cases, you can use security groups to provide Microsoft Fabric access to a specified list of users. https://learn.microsoft.com/en-us/fabric/admin/fabric-switch
  4. adamtboyle 👍 1
    A. ChatGPT says Microsoft Entra ID Free licenses must be assigned on a per-user basis and cannot be assigned to security groups or Microsoft 365 groups. Microsoft Entra Premium P1 and P2 licenses can be assigned to groups and all users within the group will inherit the license.
  5. 05e3903 👍 1 Answered D
    You can assign license to a user group M365 or security or a user in admin M365, so the correct answer is D: https://learn.microsoft.com/en-ca/entra/identity/users/licensing-admin-center
  6. vrm1358 👍 1 Answered B
    based on below refrence: https://learn.microsoft.com/en-us/fabric/admin/fabric-switch User1 and Group 1 is the answer B
  7. minura 👍 1 Answered A
    Microsoft Fabric licenses are per user licenses.
  8. Shakka 👍 1 Answered D
    I think its D, Correct me if I'm wrong

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