- A
Federate your Microsoft Entra tenant with each partner's on-premises Active Directory.
Why wrong: Federation with on-premises AD doesn't provide device compliance checks.
- B
Create guest user accounts in your Microsoft Entra tenant and assign them application roles.
Why wrong: Guest accounts require partners to manage separate credentials, not using their own corporate credentials.
- C
Configure Microsoft Entra B2C and federate with partner identity providers.
Why wrong: B2C is for consumer-facing apps and doesn't integrate device compliance for partner devices.
- D
Configure Microsoft Entra B2B collaboration and enable conditional access policies for guest users.
Entra B2B allows partners to use their own identities and conditional access can evaluate device compliance.
Quick Answer
The correct answer is to configure Microsoft Entra B2B collaboration and enable conditional access policies for guest users. This design works because B2B collaboration allows external partners to authenticate using their own corporate credentials, while conditional access policies can be applied to guest users to enforce requirements like device compliance. On the AZ-305 exam, this scenario tests your understanding of how to extend identity governance to external identities without forcing them into your tenant as full users. A common trap is choosing a solution like Azure AD B2C, which is designed for customer-facing apps, not partner authentication with existing corporate credentials. Remember that B2B collaboration treats partners as guests, allowing you to target conditional access policies specifically to the ‘Guest’ user type. A useful memory tip is “B2B for business partners, B2C for customers”—if the user already has a corporate identity, B2B is your path.
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.
Your company plans to deploy a new application to Azure. The application will be used by external partners. You need to design an identity solution that allows partners to authenticate using their own corporate credentials while ensuring that the application can enforce conditional access policies based on partner device compliance. What should you include in the design?
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 B2B collaboration and enable conditional access policies for guest users.
Option D is correct because Microsoft Entra B2B collaboration allows you to invite external partners as guest users who can authenticate with their own corporate credentials. You can then enforce conditional access policies, including device compliance checks, on these guest users by targeting the policy to the 'Guest' user type or specific external users.
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.
- ✗
Federate your Microsoft Entra tenant with each partner's on-premises Active Directory.
Why it's wrong here
Federation with on-premises AD doesn't provide device compliance checks.
- ✗
Create guest user accounts in your Microsoft Entra tenant and assign them application roles.
Why it's wrong here
Guest accounts require partners to manage separate credentials, not using their own corporate credentials.
- ✗
Configure Microsoft Entra B2C and federate with partner identity providers.
Why it's wrong here
B2C is for consumer-facing apps and doesn't integrate device compliance for partner devices.
- ✓
Configure Microsoft Entra B2B collaboration and enable conditional access policies for guest users.
Why this is correct
Entra B2B allows partners to use their own identities and conditional access can evaluate device compliance.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Microsoft Entra B2C (for customers) with Microsoft Entra B2B (for partners), leading them to choose Option C, which cannot enforce conditional access policies based on partner device compliance.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Entra B2B collaboration uses the SAML 2.0 or WS-Federation protocol to federate with the partner's identity provider, allowing the partner's device claim to be passed to your tenant. Conditional access policies can then evaluate the 'Device compliance' condition, which checks the device's compliance status reported by the partner's MDM (e.g., Microsoft Intune) if the partner is also using Microsoft Entra. A real-world scenario is a partner using Microsoft Entra with Intune; their device compliance status is included in the SAML assertion, enabling your tenant to block access if the device is non-compliant.
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.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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 — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Configure Microsoft Entra B2B collaboration and enable conditional access policies for guest users. — Option D is correct because Microsoft Entra B2B collaboration allows you to invite external partners as guest users who can authenticate with their own corporate credentials. You can then enforce conditional access policies, including device compliance checks, on these guest users by targeting the policy to the 'Guest' user type or specific external users.
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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Last reviewed: Jun 24, 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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