- A
A member user account in the company tenant
Why wrong: A member account is for internal identities and would not reflect the consultant as an external collaborator.
- B
A guest user account
A guest user lets the consultant authenticate with their own organization credentials while being represented in your tenant as an external identity.
- C
A Microsoft 365 group
Why wrong: A group is not a person, so it cannot represent one consultant who needs to sign in independently.
- D
A service principal
Why wrong: A service principal is for application authentication, not for an external person who needs interactive access.
Question 324 of 1,170
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 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
✓
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.
When this WOULD be correct
If the question asked for granting access to a new employee within the same company who needs read-only access to a resource group, then creating a member user account would be correct.
- ✓
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.
When this WOULD be correct
When the question asks for a method to grant a set of external users access to a SharePoint site or Teams channel, and the users need to be managed as a single entity for permissions, creating a Microsoft 365 group and adding them as guests would be correct.
- ✗
A service principal
Why it's wrong here
A service principal is for application authentication, not for an external person who needs interactive access.
When this WOULD be correct
A service principal would be correct if the question asked for an identity to allow an external application (e.g., a script or tool) to access Azure resources without a user signing in, such as for automated backup or monitoring tasks using API authentication.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓A guest user accountCorrect answer▾
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.
✗A member user account in the company tenantWrong answer — click to see why▾
Why this is wrong here
A member user account is for users within the company's own tenant, not for external consultants who need to sign in with their own work account. Guest user accounts (B2B collaboration) are designed for external users.
★ When this WOULD be the correct answer
If the question asked for granting access to a new employee within the same company who needs read-only access to a resource group, then creating a member user account would be correct.
Why candidates choose this
Candidates may think that any user needing access must be a member of the tenant, not realizing that external users can be added as guests without creating a full member account.
✗A Microsoft 365 groupWrong answer — click to see why▾
Why this is wrong here
A Microsoft 365 group is used for collaboration and granting permissions to multiple users, not for providing external individual access. It cannot be used to give a specific external consultant read-only access to a resource group.
★ When this WOULD be the correct answer
When the question asks for a method to grant a set of external users access to a SharePoint site or Teams channel, and the users need to be managed as a single entity for permissions, creating a Microsoft 365 group and adding them as guests would be correct.
Why candidates choose this
Candidates may confuse Microsoft 365 groups with security groups or think that groups can be used to grant access to Azure resources, but groups are not directly assigned Azure RBAC roles for external users without first creating guest accounts.
✗A service principalWrong answer — click to see why▾
Why this is wrong here
A service principal is an identity for applications or automated tools, not for individual users. The question requires a user account for an external consultant to sign in with their own work account, which is a B2B collaboration scenario, not an application identity.
★ When this WOULD be the correct answer
A service principal would be correct if the question asked for an identity to allow an external application (e.g., a script or tool) to access Azure resources without a user signing in, such as for automated backup or monitoring tasks using API authentication.
Why candidates choose this
Candidates may confuse service principals with user accounts because both can be granted permissions in Azure, but service principals are for non-human identities, leading to a mistake when the scenario clearly involves a human user.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
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.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
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.
About these practice questions
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Last reviewed: Jun 11, 2026
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