Why do I receive MathWorks Licensing Error 7?

Why do I receive the following error:
MathWorks Licensing Error 7
or 
License Manager Error -7
A licensing error occurred while trying to use <PRODUCTNAME>.
Unable to communicate with your organization's license server.

 Accepted Answer

Please refer to the MATLAB Answer below for more information.
Why do I receive "MLM: No socket connection to license server manager. (-7,10015)"?

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