AZ-305 Practice Question: Design identity, governance, and monitoring solutions
A company uses Microsoft Entra ID (Microsoft Entra ID). They want to allow external business partners to access an internal web application using their own organizational identities. The solution must support self-service sign-up and enforce multi-factor authentication for partner users. Which Microsoft Entra ID feature should they configure?
⚠ Common exam trap
Watch out — candidates often confuse B2B collaboration (for business partners with existing organizational identities) with B2C (for customers using social or local accounts), leading them to select B2C when the requirement explicitly states 'business partners' and 'their own organizational identities.'
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
✓
Microsoft Entra ID B2B collaboration
Microsoft Entra ID B2B collaboration is the correct feature because it allows external business partners to access internal applications using their own organizational identities (home directory credentials) without requiring them to have a separate account in your tenant. It supports self-service sign-up through entitlement management and can enforce multi-factor authentication (MFA) via Conditional Access policies that evaluate the partner user's session, even if the partner's home tenant does not enforce MFA.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Microsoft Entra ID B2B collaboration
Why this is correct
Microsoft Entra ID B2B collaboration is the correct solution because it lets you invite employees from partner organizations as guest users, granting them access to your internal business apps while they authenticate using their own employer-issued Entra ID or other federated credentials. It natively supports conditional access policies such as MFA and allows self-service sign-up for external partners, making it purpose-built for B2B sharing without duplicating identities.
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Microsoft Entra ID B2C
Why it's wrong here
Microsoft Entra ID B2C is designed for customer-facing, consumer scenarios where you manage identities that are not tied to an external organization's corporate directory. It provides local accounts (email/password) and social IdP federation (Google, Facebook) but does not allow a business partner's existing corporate identity to be used seamlessly with their own tenant's SSO and governance. B2C would require you to recreate partner accounts and is not intended for inter-organization collaboration.
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Microsoft Entra ID Domain Services
Why it's wrong here
Microsoft Entra ID Domain Services (formerly Azure AD DS) provides a managed Microsoft Entra domain with LDAP, Kerberos, NTLM, and Group Policy support, primarily for lifting and shifting legacy on-premises workloads to Azure virtual machines. It operates within your own tenant/domain and has no capability for inviting external users or establishing a cross-tenant sharing relationship. It is about identity infrastructure for your cloud resources, not external collaboration.
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Microsoft Entra ID Connect
Why it's wrong here
Microsoft Entra ID Connect is a hybrid identity sync tool that replicates on-premises Active Directory objects (users, groups, passwords) to Microsoft Entra ID, enabling single sign-on and seamless access to cloud resources for your own employees. It does not create guest accounts or any external access mechanism; it simply consolidates your local directory into the cloud. Therefore, it is unrelated to the requirement of collaborating with external business partners.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AZ-305 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 AZ-305 exam.