In LCS, the on-premises license is validated by entering the license serial number in:
Project settings → Organization and ownership → License serial number
This serial number is taken from the Properties section of the downloaded on-premises license file. LCS uses it to verify that the organization has valid on-premises rights.
First read the answer fully, then try to explain it in your own words. After that, open a few related questions and compare the concepts. This method helps you remember the topic for a longer time and improves exam preparation.