The answer is a guest user account. This is correct because Microsoft Entra ID B2B collaboration enables you to invite an external developer’s existing work account as a guest user, allowing them to authenticate with their own home tenant credentials rather than creating a new username and password in your directory. On the AZ-104 exam, this scenario tests your understanding of identity management for external partners, often appearing in questions about granting resource access without duplicating identities. A common trap is confusing guest users with device identities or service principals—remember that B2B guest users are for people, not apps or devices. For a memory tip, think of “B2B Guest” as “Bring Your Own Identity” for external collaborators, ensuring you avoid the overhead of manual account creation.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 partner company needs a developer to access resources in your tenant by using the developer's existing work account. You do not want to create a new separate username and password for that person. What should you create 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 Microsoft Entra ID B2B collaboration allows you to invite an external user's existing work account as a guest user. This grants access to resources without creating a new username and password, as the developer authenticates using their home tenant credentials. Guest users are managed in Entra ID and can be assigned permissions via Azure RBAC or group membership.
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 local user account in each resource group
Why it's wrong here
Resource groups do not host user accounts, so this is not a valid identity option.
✓
A guest user account
Why this is correct
A guest user lets the person sign in with their own organization account while being invited into your tenant.
Related concept
Read the scenario before looking for a memorised answer.
✗
A managed identity
Why it's wrong here
Managed identities are for Azure resources to access other services, not for human partner users.
✗
A new service principal
Why it's wrong here
Service principals represent applications or automation, not interactive human users.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse a guest user (B2B collaboration) with a service principal or managed identity, thinking any external access requires a non-user identity, but the question explicitly asks for a user account using an existing work account.
Detailed technical explanation
How to think about this question
Guest users in Entra ID B2B use cross-tenant trust via SAML 2.0 or OpenID Connect, allowing the developer to authenticate in their home tenant while receiving an access token scoped to the resource tenant. The guest user object is created in the resource tenant with a UserType of 'Guest', and permissions are assigned through Azure RBAC roles or Azure AD directory roles. A real-world scenario is granting a partner developer contributor access to a specific resource group without managing their credentials.
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 Microsoft Entra ID B2B collaboration allows you to invite an external user's existing work account as a guest user. This grants access to resources without creating a new username and password, as the developer authenticates using their home tenant credentials. Guest users are managed in Entra ID and can be assigned permissions via Azure RBAC or group membership.
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.
About these practice questions
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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. An external consultant must access a resource group in your tenant using the consultant's existing work account. You want to avoid creating a separate username and password pair. Which two actions should the administrator take? Select two.
medium
✓ A.Invite the consultant as a guest user in Microsoft Entra ID.
B.Create a new member user account with an internal password.
✓ C.Assign the required RBAC role on the target resource group to the guest account.
D.Add the consultant to the Global Administrator role.
E.Share the subscription ID and tenant ID only.
Why A: Option A is correct because inviting the consultant as a guest user in Microsoft Entra ID (formerly Azure AD) allows the consultant to use their existing work account (external identity) without creating a new username/password. This leverages B2B collaboration, which uses the consultant's home directory for authentication, and the guest user object is created in your tenant to represent them.
Last reviewed: Jun 11, 2026
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