SC-300 Implement and Manage User Identities Practice Question
You have a large Microsoft Entra ID tenant with 10,000 users. You need to delegate the ability to reset passwords for users in the 'Seattle' office to a local IT lead, without granting them administrative rights over users in other offices. What should you create?
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
✓
An Administrative Unit containing the Seattle users
Administrative Units (AUs) provide a way to define a boundary within a Microsoft Entra ID tenant for the purpose of delegating administrative permissions. This is essential for large organizations that need to distribute IT tasks to local administrators while maintaining the principle of least privilege across the entire global directory.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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A new Custom Role with a scope of the entire directory
Why it's wrong here
Assigning a custom role at the directory scope would grant the local IT lead permissions over all 10,000 users in the tenant. This violates the requirement to limit their authority to only the Seattle office, leading to excessive permissions and potential security risks across the broader organizational structure.
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A Dynamic Security Group containing the Seattle users
Why it's wrong here
Groups are used for granting access to resources like applications or SharePoint sites, but they do not serve as a scope for delegating directory administrative roles. While the group can identify the users, it cannot restrict an administrator's ability to perform actions only on the members of that group.
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A Conditional Access policy targeting the Seattle location
Why it's wrong here
Conditional Access policies are used to control how and when users can access applications based on signals like location or device health. They cannot be used to delegate administrative permissions like password resets, as they are part of the authentication flow rather than the identity management delegation framework.
- ✓
An Administrative Unit containing the Seattle users
Why this is correct
An Administrative Unit allows you to group specific users and then assign a Helpdesk Administrator role scoped specifically to that unit. This ensures the IT lead can only reset passwords for the Seattle-based users, fulfilling the requirement for regional delegation while following the security principle of least privilege.
About these practice questions
One of 17 original SC-300 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This SC-300 practice question is part of Courseiva's free Microsoft 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 SC-300 exam.