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IT Certifications · 70-705

Exam 70-705: Designing and Providing Microsoft Licensing Solutions to Large Organizations Practice Test

Exam 70-705 concerns designing Microsoft licensing solutions for large organizations. The work involves matching Microsoft software and cloud-service rights to business needs, users, devices, workloads, and agreement terms. Licensing decisions also need to account for organizational changes, accessibility, data protection, geographic use, and the ongoing fit between subscription quantities and actual usage.

Exam overview

Exam providerMicrosoft
Exam code70-705
CategoryIT Certifications

About the Exam 70-705: Designing and Providing Microsoft Licensing Solutions… Exam

Licensing work requires translating technical and operational requirements into defensible entitlement decisions. Teams may compare subscription options, assess user and device access, and determine whether existing rights cover a deployment or can be reassigned. Agreement planning involves aligning quantities and commitments with projected demand while accounting for acquisitions, changing headcount, and multinational operations. Ongoing administration includes identifying underused subscriptions without removing capabilities users depend on. License benefits and prior-version rights should be evaluated against their applicable terms before they are treated as available or as cost savings. Licensing design also connects to accessibility requirements and controls for services handling sensitive data. These tasks call for careful interpretation of contract terms, service capabilities, usage information, and business context rather than selecting licenses by price alone.

Sample Practice Questions

Review a selection from this exam's published US Practice Tests practice bank.

Question 1

A company plans to acquire a business whose employees use Microsoft cloud services. What should the licensing team do before deciding whether to retain or change those subscriptions?

  1. AAssume the acquired subscriptions transfer automatically in every case
  2. BReview the applicable agreement terms, subscription ownership, and required transition actions
  3. CCancel all subscriptions immediately and recreate them later
  4. DTreat the acquired organization’s users as unlicensed until the next annual renewal
Show answerCorrect answer: B

Acquisitions can involve changes in legal entities, tenants, agreements, and subscription administration. Reviewing the applicable terms and transition requirements helps prevent service disruption and licensing gaps.

Question 2

An organization is planning to provide a Microsoft service to users who need accessibility features. What is the best way to include this need in the licensing design?

  1. AIdentify the required accessibility capabilities and verify which eligible plans or services provide them
  2. BAssign the same premium plan to every employee without checking requirements
  3. CAssume accessibility features are identical across all plans
  4. DDefer the issue until after all users have been licensed
Show answerCorrect answer: A

The design should document the specific accessibility needs and confirm that the chosen plan supports them. This enables targeted assignment and avoids relying on assumptions about feature availability.

Question 3

A company wants to reduce unused subscription spending without removing capabilities employees rely on. What is the best ongoing practice?

  1. AReview usage and assigned capabilities periodically, then adjust assignments using approved change controls
  2. BRemove all licenses from users who have not signed in during the last seven days
  3. CKeep all original assignments unchanged for the life of the agreement
  4. DReplace every subscription with a perpetual license
Show answerCorrect answer: A

Periodic usage and assignment reviews can identify mismatches and support appropriate optimization. Changes should account for business needs, dependencies, retention requirements, and the terms governing the subscriptions.

Question 4

A company wants to let employees access a Microsoft service from personally owned devices. Which licensing question is most important to resolve?

  1. AWhether the service's applicable terms and selected plan permit the intended user access and usage scenario
  2. BWhether employees have installed the same mobile wallpaper
  3. CWhether the company owns the devices' retail packaging
  4. DWhether employees use only one network connection
Show answerCorrect answer: A

Access from personal devices should be assessed against the service terms, plan capabilities, and the organization's intended usage. Device ownership alone does not establish what access rights apply.

Question 5

A large organization is negotiating a multi-year licensing agreement. Which approach best helps it avoid committing to quantities that no longer reflect business needs?

  1. AReview expected growth, reductions, and renewal timing before settling commitment quantities
  2. BUse the highest employee count recorded during the previous year
  3. CCommit to the same quantities as the previous agreement without reassessment
  4. DExclude planned acquisitions and divestitures from forecasting
Show answerCorrect answer: A

Forecasting likely changes in the organization’s size and requirements helps align commitments with anticipated demand and reduces the risk of over- or under-licensing.

Question 6

A licensing design includes cloud services that process sensitive organizational data. What should the design team do alongside license selection?

  1. AValidate that the selected services and configuration meet the organization’s security, privacy, and compliance requirements
  2. BAssume a higher-priced plan automatically satisfies every regulatory obligation
  3. CAvoid documenting data flows because licensing already defines them
  4. DUse the same configuration for all workloads without risk assessment
Show answerCorrect answer: A

A license choice alone does not establish that a service configuration meets every organizational or regulatory requirement. Security, privacy, data handling, and compliance needs should be assessed for the intended use.

Question 7

A company is assessing whether its existing Microsoft licenses can be reassigned after an employee leaves. Which source should govern the reassignment decision?

  1. AThe employee’s onboarding documents
  2. BThe applicable product terms and agreement conditions
  3. CThe organization’s internal software inventory format
  4. DThe purchasing department’s preferred reassignment schedule
Show answerCorrect answer: B

Reassignment rights and any applicable limits are determined by the terms governing the licenses, not by internal preferences or personnel documents. The organization should check the applicable terms before reallocating licenses.

How to use this practice test

The free US Practice Tests practice bank contains 50 questions for this exam. Each session presents up to 20 questions selected at random and shows results afterward. Use the questions to check how you reason through licensing scenarios, then revisit any missed decisions involving entitlements, agreement planning, access requirements, or subscription use.

Preparation tips

  • For a proposed reassignment or earlier-version deployment, identify the agreement or licensing terms that determine whether the right exists and what conditions apply.
  • When comparing subscription quantities with usage, distinguish unused licenses from capabilities that employees still need before proposing reductions.
  • Work through acquisition and multinational scenarios by listing changes to users, services, locations, and existing agreements that could affect licensing decisions.
  • For personal-device access and sensitive-data workloads, separate the access or service requirement from the security and data-protection controls the organization must address.
  • Before counting a cloud licensing benefit as a saving, verify that its terms cover the specific workload and deployment model.
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