An unmanaged Google account is a personal account created by an individual using a corporate email address (e.g., john@company.com), which the organization cannot control. The root cause is that the organization has not claimed the identity for that email address.
Extracts:
"To prevent unmanaged Google account creation, you have two options: Create a user for every person who has an email address in your domain... If there are unmanaged accounts already created, you can use the Transfer Tool for unmanaged users to invite them to become managed users." (Source 5.1)
"If an admin creates a managed Google Account using the same account name as an existing unmanaged user account, this results in a conflicting account." (Source 5.3)
By provisioning an account for every employee (via Google Workspace or Cloud Identity), you effectively claim that domain identity, making it a managed account under IT control and preventing the creation of a new, unmanaged consumer account with the same email address.
Option B describes the foundational, preventative step in identity management: provisioning managed identities for all users in the domain.