SY0-701 Security Architecture Practice Question
Employees must sign in to several cloud applications with their corporate account, and terminated users should lose access without separate password resets in each app. What is the best solution?
⚠ Common exam trap
Many candidates confuse password managers (which store credentials but do not provide centralized revocation) with federation, or they mistakenly think MAC address authentication is viable for cloud applications, when in fact MAC addresses are link-layer identifiers not usable over the internet.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use federation with single sign-on from a central identity provider.
Federation with single sign-on (SSO) from a central identity provider (IdP) allows users to authenticate once using their corporate account, and the IdP issues security tokens (e.g., SAML assertions or OIDC tokens) that each cloud application trusts. When a user is terminated, the administrator disables the account in the IdP, and all applications immediately reject the user's tokens, eliminating the need for separate password resets in each app.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a separate local username and password in every cloud application.
Why it's wrong here
Maintaining separate local credentials in every cloud application creates password sprawl and forces users to either memorize many passwords or reuse weak ones, increasing the likelihood of credential stuffing. It also fragments identity governance: deprovisioning a departing employee requires manually locating and disabling that identity in each app, which is slow, error-prone, and often incomplete. Because password complexity, rotation, and MFA policies cannot be enforced uniformly from a central point, the security posture becomes inconsistent across the SaaS estate.
- ✓
Use federation with single sign-on from a central identity provider.
Why this is correct
Federation with SSO is the best option because employees authenticate once with the corporate identity provider and then access multiple applications through trusted token exchange. This reduces password sprawl, improves user convenience, and makes offboarding faster because disabling the central account removes access across connected services. It also supports stronger controls such as MFA at the identity provider rather than repeating them in every application.
- ✗
Store the same shared password in a password manager for all applications.
Why it's wrong here
Reusing a single shared password across all applications via a password manager removes per-user accountability because every login appears as the same shared identity, rendering audit trails nearly useless. A single exposure of that common secret—through phishing, a data breach, or an insider—compromises every connected cloud service in one step, making targeted credential-stuffing attacks trivial. Since all users know the same secret, revoking access for one employee forces a jarring global password rotation across every application, disrupting the entire team, and this approach still provides no per-user MFA or step-up authentication.
- ✗
Allow each application to authenticate users only by device MAC address.
Why it's wrong here
MAC addresses are unencrypted Layer 2 identifiers used only for devices on a local network segment; they are not transmitted to cloud applications across the internet and can be trivially spoofed with software, so the identity claim is unverifiable. MAC-based authentication ties access to a physical NIC, not to a human, meaning it cannot distinguish different users on a shared workstation or prove who is actually present. It also precludes strong authentication controls like MFA because a MAC address is static—it carries no secret, possession factor, or biometric evidence—making it a weak, low-assurance method unsuitable for remote SaaS access.
Go deeper
Related to this question
Learn chapter
Cloud Security Fundamentals
Key term
Federation
Federation is a system that lets you use one set of login credentials (like your work email and password) to access resources across different organizations or services without needing separate accounts for each one.
Key term
SSO
Single Sign-On (SSO) is an authentication process that allows a user to access multiple applications or systems with one set of login credentials.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SY0-701 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SY0-701 exam.