Microsoft 365 licenses are categorized to serve different types of organizations. The letter in the license name designates its target audience. "A" licenses (e.g., A5) are for Academic institutions, not small businesses. "G" licenses (e.g., G5) are tailored for Government entities, not educational institutions. Finally, "E" licenses (e.g., E5) are designed for Enterprise-level organizations, making the third statement correct. Small businesses typically use the "Microsoft 365 Business" plans (e.g., Business Premium).

Microsoft. "Microsoft 365 Education." Microsoft. Accessed September 9, 2025. This official page details the 'A' series of licenses (A3, A5) and explicitly states they are for academic institutions, including students and educators.

Microsoft. "Microsoft 365 Government." Microsoft. Accessed September 9, 2025. This documentation outlines the 'G' series of plans (G3, G5), specifying their availability and features for U.S. government organizations at the federal, state, and local levels.

Microsoft. "Compare Microsoft 365 Enterprise Plans." Microsoft. Accessed September 9, 2025. This resource provides a comparison of the 'E' plans (E3, E5), which are positioned as the primary offerings for large, enterprise-scale organizations.