A company is evaluating Microsoft 365 business licensing. You need to describe the available license subscription options. Which two options should you describe? Each correct answer presents part of…

Microsoft 365 business licenses are assigned and priced on a per-user basis, meaning each individual user in the organization requires their own license, which is the fundamental unit of licensing for Microsoft 365.

Microsoft 365 business subscriptions offer monthly billing and commitment options, allowing organizations to pay month-to-month or commit annually with monthly payments, making 'per month' a valid subscription option.

Microsoft 365 does not offer a 'per fiscal year' subscription tier; while annual commitments exist, they are not described as fiscal year options and are not a distinct licensing model.

Microsoft 365 does not offer quarterly subscription or billing options; available terms are monthly or annual, so 'per quarter' is not a valid subscription option.

Microsoft 365 licenses are assigned to individual users, not to Microsoft Entra ID (formerly Azure AD) groups; while group-based license assignment is an administrative feature, it is not a subscription purchasing option.