- A
Create separate local accounts in each cloud application and synchronize passwords manually.
Why wrong: Local accounts require separate lifecycle management in every application and make termination slower and more error-prone. Manual password synchronization also increases administrative work and weakens centralized control.
- B
Use federation with single sign-on through the corporate identity provider, such as SAML or OpenID Connect.
Federation with SSO lets the company authenticate users centrally while each cloud application trusts assertions from the identity provider. That supports one login experience, faster deprovisioning, and consistent enforcement of corporate authentication controls across all apps.
- C
Configure RADIUS authentication directly on each cloud application so users can reuse one password.
Why wrong: RADIUS is commonly used for network access and some remote access workflows, but it is not the typical architecture for modern SaaS application federation. It also does not by itself provide the same broad SSO model described in the scenario.
- D
Store one shared administrator password for all users in a password vault.
Why wrong: A shared account destroys accountability and violates least privilege. It also makes offboarding impossible to manage cleanly because access is not tied to individual identities or centralized policy enforcement.
Federation with Single Sign-On: Central Identity for Cloud Apps
This SY0-701 practice question tests your understanding of security architecture. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company uses four cloud applications and wants employees to sign in once with corporate credentials. The applications should trust the company’s identity platform, and disabling a user in the directory should remove access everywhere without separate password resets. Which architecture should the team implement?
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 through the corporate identity provider, such as SAML or OpenID Connect.
Option B is correct because federation with single sign-on (SSO) using the corporate identity provider (IdP) via SAML or OpenID Connect allows users to authenticate once with their corporate credentials. The cloud applications trust the IdP, so disabling a user in the corporate directory immediately revokes access across all applications without requiring separate password resets. This architecture decouples authentication from the applications and centralizes identity management.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 separate local accounts in each cloud application and synchronize passwords manually.
Why it's wrong here
Local accounts require separate lifecycle management in every application and make termination slower and more error-prone. Manual password synchronization also increases administrative work and weakens centralized control.
- ✓
Use federation with single sign-on through the corporate identity provider, such as SAML or OpenID Connect.
Why this is correct
Federation with SSO lets the company authenticate users centrally while each cloud application trusts assertions from the identity provider. That supports one login experience, faster deprovisioning, and consistent enforcement of corporate authentication controls across all apps.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Configure RADIUS authentication directly on each cloud application so users can reuse one password.
- ✗
Store one shared administrator password for all users in a password vault.
Why it's wrong here
A shared account destroys accountability and violates least privilege. It also makes offboarding impossible to manage cleanly because access is not tied to individual identities or centralized policy enforcement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse RADIUS (a network access protocol) with web SSO protocols like SAML or OpenID Connect, mistakenly thinking RADIUS can provide centralized web authentication and access revocation across cloud applications.
Trap categories for this question
Scenario analysis trap
RADIUS is commonly used for network access and some remote access workflows, but it is not the typical architecture for modern SaaS application federation. It also does not by itself provide the same broad SSO model described in the scenario.
Detailed technical explanation
How to think about this question
Federation with SAML or OpenID Connect relies on the exchange of signed assertions or ID tokens between the IdP and service providers (cloud apps). When a user is disabled in the corporate directory (e.g., Active Directory), the IdP stops issuing valid assertions, effectively revoking access to all federated applications without needing to update each app individually. In real-world scenarios, this architecture also supports attributes like group membership for role-based access control (RBAC) across multiple SaaS applications.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A security analyst at a medium-sized enterprise encounters this scenario during an investigation or architecture review. The correct answer reflects best practice for the specific threat or control described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Security exam questions test whether you can match controls to threats in context — not just recall definitions.
What to study next
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FAQ
Questions learners often ask
What does this SY0-701 question test?
Security Architecture — This question tests Security Architecture — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use federation with single sign-on through the corporate identity provider, such as SAML or OpenID Connect. — Option B is correct because federation with single sign-on (SSO) using the corporate identity provider (IdP) via SAML or OpenID Connect allows users to authenticate once with their corporate credentials. The cloud applications trust the IdP, so disabling a user in the corporate directory immediately revokes access across all applications without requiring separate password resets. This architecture decouples authentication from the applications and centralizes identity management.
What should I do if I get this SY0-701 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
3 more ways this is tested on SY0-701
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Employees use one corporate login to sign in to email, the ticketing portal, and the HR application. After signing in once, the other apps accept the same identity without separate passwords. What capability is this?
easy- ✓ A.Single sign-on (SSO)
- B.Federation
- C.Multi-factor authentication (MFA)
- D.Session timeout
Why A: Single sign-on (SSO) allows a user to authenticate once and gain access to multiple applications without re-entering credentials. In this scenario, the corporate login provides a token (e.g., Kerberos ticket or SAML assertion) that is accepted by the email, ticketing portal, and HR application, eliminating the need for separate passwords. This is the core capability of SSO.
Variation 2. 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?
easy- A.Create a separate local username and password in every cloud application.
- ✓ B.Use federation with single sign-on from a central identity provider.
- C.Store the same shared password in a password manager for all applications.
- D.Allow each application to authenticate users only by device MAC address.
Why B: 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.
Variation 3. A company wants employees to use one corporate login for multiple SaaS applications, require MFA when users sign in from unmanaged devices, and centralize account lifecycle management. Which design best meets these requirements?
medium- A.Create separate local usernames and passwords in each SaaS application.
- B.Use shared accounts for each department and keep one password vault for the team.
- ✓ C.Implement federated single sign-on through a central identity provider with MFA and conditional access policies.
- D.Require all users to connect through a VPN before any SaaS login and remove identity federation.
Why C: Option C is correct because federated single sign-on (SSO) through a central identity provider (IdP) like Azure AD or Okta allows employees to use one corporate login across multiple SaaS applications via protocols such as SAML 2.0 or OIDC. The IdP enforces MFA for unmanaged devices through conditional access policies (e.g., device compliance checks) and centralizes account lifecycle management by provisioning/deprovisioning users from a single directory (e.g., LDAP or SCIM).
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Last reviewed: Jun 11, 2026
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