The answer is a Conditional Access policy, as it is the only Microsoft Entra ID feature that can simultaneously enforce multifactor authentication and require acceptance of a terms-of-use based on device state. This is correct because Conditional Access evaluates conditions like whether a device is managed or unmanaged, then applies granular access controls—such as prompting for MFA and displaying a terms-of-use—before granting access to sensitive data. On the AZ-305 exam, this scenario tests your understanding of how to consolidate security requirements into a single policy rather than using separate MFA and terms-of-use policies, which is a common trap where candidates overcomplicate the solution. A key memory tip is to think of Conditional Access as the "if-then" engine: if the device is unmanaged, then require MFA and terms-of-use.
AZ-305 Practice Question: Design identity, governance, and monitoring solutions
This AZ-305 practice question tests your understanding of design identity, governance, and monitoring solutions. 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 company uses Microsoft Entra ID for identity management. They want to ensure that users accessing sensitive data from unmanaged devices are prompted for multifactor authentication (MFA) and must accept a terms-of-use. Which policy should be configured?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Conditional Access policy
Conditional Access policies in Microsoft Entra ID allow granular control over access based on conditions such as device state (managed vs. unmanaged). By configuring a policy that targets unmanaged devices, you can enforce MFA and require acceptance of a terms-of-use before granting access to sensitive data. This directly meets the requirement without needing separate policies for MFA and terms-of-use.
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.
✗
Terms-of-use policy
Why it's wrong here
Terms-of-use alone cannot enforce MFA or target unmanaged devices.
✓
Conditional Access policy
Why this is correct
Conditional Access can target unmanaged devices and require MFA and terms-of-use.
Related concept
Read the scenario before looking for a memorised answer.
✗
Identity Protection policy
Why it's wrong here
Identity Protection focuses on risk detection and remediation, not device-based conditions.
✗
Privileged Identity Management (PIM) policy
Why it's wrong here
PIM manages just-in-time privileged access, not device-based access controls.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse a standalone Terms-of-use policy (Option A) with the ability to enforce it conditionally, not realizing that Conditional Access is required to tie the terms-of-use acceptance to a specific condition like unmanaged devices.
Detailed technical explanation
How to think about this question
Under the hood, Conditional Access policies evaluate signals such as device compliance (via Microsoft Intune MDM), location, and application sensitivity before applying grants like MFA or terms-of-use. The terms-of-use acceptance is stored as a consent record in the user’s directory object, and the policy can be scoped to specific cloud apps (e.g., SharePoint Online) to protect sensitive data. In a real-world scenario, an organization might combine this with a device compliance policy to block non-compliant devices entirely, but the question specifically requires MFA and terms-of-use on unmanaged devices.
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-305 question in full detail.
Design identity, governance, and monitoring solutions — This question tests Design identity, governance, and monitoring solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Conditional Access policy — Conditional Access policies in Microsoft Entra ID allow granular control over access based on conditions such as device state (managed vs. unmanaged). By configuring a policy that targets unmanaged devices, you can enforce MFA and require acceptance of a terms-of-use before granting access to sensitive data. This directly meets the requirement without needing separate policies for MFA and terms-of-use.
What should I do if I get this AZ-305 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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