Windows Server Standard 2016 Core Licensing

Windows Server 2016 has moved to per Core licensing, All physical cores in the Server must be licensed.

So it depends how many cores you have in your physical server.

When purchasing through volume licenses - which is the only way you should purchase Server licenses in my opinion (NEVER buy OEM) they are sold in 2-core packs.  To get a "full" Windows Server 2016 license, you need to purchase a MINIMUM of EIGHT 2-core packs.  (This is approximately the same price as a single 2012 license was).  That means that a SINGLE, properly licensed 2016 server will have support for 16 cores.  Furthermore, when deploying VMs always start with a TOTAL of 2 cores available to the VM (2 vCPU with 1 core, 1 vCPU with 2 cores, whatever).  Add vCPUs as needed.  Why not start with a higher number?  Read:
http://www.zdnet.com/article/virtual-cpus-the-overprovisioning-penalty-of-vcpu-to-pcpu-ratios/

Finally:
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This is what I currently have when it comes to the physical server.
Dell Host VMware Summary:
16 CPUs x 1.999 GHz
Processor Sockets: 2
Cores per Socket: 8
Logical Processors: 32

Total of 16 cores need to be licensed

This is what you need to purchase

Windows Server® 2016 Standard (16 core)

VM's included when all cores are licensed      2

Andrew is 100% correct. Windows Server 2016 Standard is licensed for the physical machine. You have 16 cores, therefore, as Andrew states, you are all set on licensing for the cores. The VMs are different. The Server license will allow you two VMs. If you want more, even one, you will need to purchase an entire Windows Server 2016 Standard, giving you two more VMs.

If your cores were over 16, say four, they you can purchase core licenses. Each core license pack comes is good for two additional core licenses.

PLEASE DO NOT ASSIGN ME ANY POINTS OR ASSIST AS ANDREW ANSWERED THE QUESTION.

I think I have some understanding when it comes to core licensing; However, I have a question on actual VMs.

Is it possible that I can set up 4 VMs (4-core each) on the physical host all running Windows Server 2016 Standard?
What happens if I have only two VMs using 8 cores in total do I still need to purchase the license to cover for all 16 cores anyways?

If I cover all 16 cores how many serial numbers do I get, how many VMs can I install? If it's only two then it does not make any sense having all the extra resources within the environment.

Sorry for the extra questions, but for some reason I am still a bit confused.
Thanks,

Andrew thank you for your answer. Lee thanks for detailed explanation.

not a problem