- A
Configure Microsoft Entra Connect Sync to synchronize users from the on-premises AD to the new Entra ID tenant.
Sync brings identities to the cloud without federation complexity.
- B
Federate the on-premises AD with the existing Microsoft Entra ID tenant.
Why wrong: Federation adds overhead and does not minimize identity management.
- C
Create a new Microsoft Entra ID tenant for the acquired company.
A new tenant isolates identity management and reduces overhead.
- D
Establish a cross-tenant trust between the existing and new Entra ID tenants.
Why wrong: Cross-tenant trust is not supported for authentication in Entra ID.
- E
Use Microsoft Entra B2B collaboration to invite users from the acquired company.
Why wrong: B2B is for external partners, not for acquired employees.
Quick Answer
The answer is to create a new Microsoft Entra ID tenant for the acquired company and synchronize users using Microsoft Entra Connect Sync. This design minimizes identity management overhead by isolating the acquired company’s on-premises Active Directory forest into its own tenant, avoiding complex cross-tenant trusts or federation, while Connect Sync provides a straightforward, automated method to bring those on-premises identities into the cloud for Microsoft 365 and Azure resource access. On the AZ-305 exam, this scenario tests your ability to balance isolation with integration for a multinational company’s identity solution; a common trap is choosing B2B collaboration, which is for external partners, not employees, or assuming cross-tenant trusts are supported for authentication. Remember the memory tip: “New tenant, new sync” — when acquiring a company with its own AD forest, create a separate tenant and use Connect Sync to keep identity management clean and overhead low.
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. 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.
You are designing an identity solution for a multinational company that has a Microsoft Entra ID tenant. The company plans to acquire a smaller company that currently uses an on-premises Active Directory (AD) forest. The acquired company's users need to access Microsoft 365 applications and Azure resources. The solution must minimize identity management overhead. Which TWO actions should you include in the design? (Choose two.)
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 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
Configure Microsoft Entra Connect Sync to synchronize users from the on-premises AD to the new Entra ID tenant.
Option A is correct because configuring a new Microsoft Entra tenant for the acquired company isolates identity management and minimizes overhead. Option C is correct because synchronizing users using Microsoft Entra Connect Sync brings on-premises identities to the cloud. Option B is wrong because a cross-tenant trust between Entra ID tenants is not supported for authentication. Option D is wrong because federation requires additional infrastructure and overhead. Option E is wrong because B2B collaboration is for external users, not for employees of an acquired company.
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.
- ✓
Configure Microsoft Entra Connect Sync to synchronize users from the on-premises AD to the new Entra ID tenant.
Why this is correct
Sync brings identities to the cloud without federation complexity.
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.
- ✗
Federate the on-premises AD with the existing Microsoft Entra ID tenant.
Why it's wrong here
Federation adds overhead and does not minimize identity management.
- ✓
Create a new Microsoft Entra ID tenant for the acquired company.
Why this is correct
A new tenant isolates identity management and reduces overhead.
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.
- ✗
Establish a cross-tenant trust between the existing and new Entra ID tenants.
Why it's wrong here
Cross-tenant trust is not supported for authentication in Entra ID.
- ✗
Use Microsoft Entra B2B collaboration to invite users from the acquired company.
Why it's wrong here
B2B is for external partners, not for acquired employees.
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.
What to study next
Got this wrong? Here's your next step.
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.
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Design identity, governance, and monitoring solutions — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-305 question test?
Design identity, governance, and monitoring solutions — This question tests Design identity, governance, and monitoring solutions — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Configure Microsoft Entra Connect Sync to synchronize users from the on-premises AD to the new Entra ID tenant. — Option A is correct because configuring a new Microsoft Entra tenant for the acquired company isolates identity management and minimizes overhead. Option C is correct because synchronizing users using Microsoft Entra Connect Sync brings on-premises identities to the cloud. Option B is wrong because a cross-tenant trust between Entra ID tenants is not supported for authentication. Option D is wrong because federation requires additional infrastructure and overhead. Option E is wrong because B2B collaboration is for external users, not for employees of an acquired company.
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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Last reviewed: Jun 21, 2026
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.
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