AZ-305 Practice Question: Design identity, governance, and monitoring solutions
Your company has a Microsoft Entra ID tenant with 10,000 users. You plan to grant external partners access to a specific SharePoint Online site using Microsoft Entra B2B collaboration. You need to ensure that partners can authenticate using their own corporate credentials. What should you configure?
⚠ Common exam trap
Many exam-takers confuse Cross-tenant synchronization (Option A) with B2B collaboration, but Cross-tenant synchronization is for internal multi-tenant scenarios, not for granting external partners access with their own credentials.
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 B2B collaboration with external identities
Microsoft Entra B2B collaboration allows external partners to authenticate using their own corporate credentials (such as Microsoft Entra ID, Microsoft account, or other identity providers) without requiring a separate password or local account. This is the correct solution because it directly supports the requirement for partners to use their own identity providers, enabling seamless access to the SharePoint Online site via guest user invitations.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Cross-tenant synchronization
Why it's wrong here
Cross-tenant synchronization is a provisioning capability in Microsoft Entra ID that creates and updates B2B user objects across tenants, often used in multi-tenant organizations to share access to applications. However, it does not perform authentication; an external user still needs to authenticate against their home tenant via a B2B collaboration flow or another federation method. Therefore, choosing this alone would not enable partner users to sign in using their own identity provider.
- ✗
Conditional Access policy for guest users
Why it's wrong here
Conditional Access policies are access-control rules that evaluate signals such as user risk, device compliance, and location to allow or block access to resources. They can be targeted at guest users to enforce multi-factor authentication or restrict access, but they do not provide an authentication mechanism for external users. Without first enabling external identities like B2B collaboration, no guest accounts exist to evaluate, so this option cannot fulfill the requirement for partner authentication.
- ✓
Microsoft Entra B2B collaboration with external identities
Why this is correct
Microsoft Entra B2B collaboration is the external-identities feature that lets you invite external users to access resources while they authenticate with their own identity provider, such as a corporate Microsoft Entra ID tenant, Microsoft account, or a social IdP. This creates a guest user object in your tenant but the actual sign-in occurs at the partner's home tenant, and your tenant accepts the resulting token. This satisfies the requirement of allowing partner users to use their own credentials without managing passwords for them.
- ✗
Microsoft Entra guest user accounts with password
Why it's wrong here
Creating guest user accounts with a password in your Entra ID tenant means you are provisioning local credentials for each partner user, effectively managing their authentication yourself. This does not leverage the partner's own identity provider, so you would be responsible for password resets, expiration, and compliance policies for those accounts. In contrast, B2B collaboration delegates authentication to the partner's federated identity provider, which is the intended way to support external identities.
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Written by Johnson Ajibi, MSc IT Security
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