Microsoft licenses for businesses typically work through a subscription model. You by purchasing a subscription to a Microsoft product, with multiple plans available to suit differing business needs.
In most cases, licenses are charged per user, per month, though there are some exceptions.
Once the subscription is purchased, the business admin creates user accounts and assigns licenses to each user. Each license allows the user to access the services and applications included in the subscription.
As the business grows or changes, licenses can be reassigned to new users or additional licenses can be purchased to accommodate more employees.
Some licenses also offer access to Microsoft services, like Exchange Online, SharePoint Online, and Microsoft Teams. However, this can vary dependent on the subscription plan, so it is crucial to understand the ins and outs of your chosen plan.