The answer is administrative units in Microsoft Entra ID. These units allow you to create logical boundaries within a single tenant, delegating administration and restricting resource access to a specific subset of users and groups—perfectly isolating subsidiaries without requiring separate tenants. On the Microsoft Azure Solutions Architect Expert AZ-305 exam, this scenario tests your understanding of scoped delegation versus broad access controls; a common trap is choosing Conditional Access policies, which enforce conditions but do not create administrative silos, or B2B collaboration, which is designed for external partners, not internal subsidiaries. The key insight is that administrative units minimize overhead by letting you manage subsidiary isolation entirely within one tenant, avoiding the complexity of multiple directories. Memory tip: think of administrative units as “fenced-off zones” within your Entra ID forest—each subsidiary gets its own paddock, but the same gatekeeper manages all.
AZ-305 Design infrastructure solutions Practice Question
This AZ-305 practice question tests your understanding of design infrastructure solutions. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
You are designing an identity solution for a multinational corporation that uses Microsoft Entra ID. The company has a complex organizational structure with multiple subsidiaries. You need to ensure that users from one subsidiary cannot access resources in another subsidiary unless explicitly granted. The solution must minimize administrative overhead. What should you use?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Administrative units
Option D is correct. Administrative units in Microsoft Entra ID allow you to delegate administration and restrict access to a subset of users and resources. Option A is wrong because Conditional Access policies control access based on conditions but do not provide administrative boundaries. Option B is wrong because custom roles can be created but administrative units are designed for scoping. Option C is wrong because B2B collaboration is for external users, not internal subsidiaries.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Administrative units
Why this is correct
Administrative units allow you to delegate administration and resource access per subsidiary.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
✗
Conditional Access policies
Why it's wrong here
Conditional Access controls access conditions, not administrative boundaries.
✗
Microsoft Entra B2B collaboration
Why it's wrong here
B2B is for external users, not internal subsidiaries.
✗
Custom directory roles
Why it's wrong here
Custom roles define permissions but do not scope to subsidiaries.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-305 NAT questions on configuration and troubleshooting.
Design infrastructure solutions — This question tests Design infrastructure solutions — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Administrative units — Option D is correct. Administrative units in Microsoft Entra ID allow you to delegate administration and restrict access to a subset of users and resources. Option A is wrong because Conditional Access policies control access based on conditions but do not provide administrative boundaries. Option B is wrong because custom roles can be created but administrative units are designed for scoping. Option C is wrong because B2B collaboration is for external users, not internal subsidiaries.
What should I do if I get this AZ-305 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-305 NAT questions on configuration and troubleshooting.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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