The answer is a guest user account in Microsoft Entra ID. This is the correct choice because a guest user account enables B2B collaboration, allowing an external consultant from another company to sign in with their own work account while being granted read-only access to a specific resource group—without needing to create a separate identity in your tenant. On the AZ-104 exam, this scenario tests your understanding of identity management and resource governance, often appearing as a scenario where you must distinguish between guest users, service principals, and user accounts. A common trap is choosing a service principal, but that is for applications, not human users. Remember the memory tip: “Guest for guest, not for app”—if the user is external and brings their own credentials, always think guest user.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
An external consultant from another company needs read-only access to a resource group and must sign in with their own work account. What should be created in Microsoft Entra ID?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A guest user account
B is correct because a guest user account in Microsoft Entra ID (formerly Azure AD) allows an external user from another organization to sign in using their own work account (via B2B collaboration) and be granted read-only access to a specific resource group. This leverages the existing identity provider of the external consultant, eliminating the need to create a separate identity in the company tenant.
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.
✗
A member user account in the company tenant
Why it's wrong here
A member account is for internal identities and would not reflect the consultant as an external collaborator.
✓
A guest user account
Why this is correct
A guest user lets the consultant authenticate with their own organization credentials while being represented in your tenant as an external identity.
Related concept
Read the scenario before looking for a memorised answer.
✗
A Microsoft 365 group
Why it's wrong here
A group is not a person, so it cannot represent one consultant who needs to sign in independently.
✗
A service principal
Why it's wrong here
A service principal is for application authentication, not for an external person who needs interactive access.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse a guest user with a member user, thinking a new identity must be created in the tenant, but the key requirement is that the external consultant signs in with their own work account, which only a guest user (B2B collaboration) supports.
Detailed technical explanation
How to think about this question
Under the hood, Azure AD B2B collaboration uses the external user's existing Azure AD or Microsoft account as an identity provider, creating a guest user object (UserType = Guest) in the resource tenant. When the guest user signs in, Azure AD issues a token scoped to the resource tenant, and RBAC roles (e.g., Reader) can be assigned at the resource group level. A subtle behavior is that guest users have limited directory permissions by default (e.g., cannot enumerate users) unless explicitly granted, which aligns with the read-only access requirement.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A guest user account — B is correct because a guest user account in Microsoft Entra ID (formerly Azure AD) allows an external user from another organization to sign in using their own work account (via B2B collaboration) and be granted read-only access to a specific resource group. This leverages the existing identity provider of the external consultant, eliminating the need to create a separate identity in the company tenant.
What should I do if I get this AZ-104 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.
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Question Discussion
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