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.
Your organization uses Microsoft Entra ID. You need to allow external users to sign in using their own identity providers (e.g., Google, Facebook) to access a custom application. What should you configure?
Microsoft Entra Connect
Why wrong: Connect is for syncing on-premises directories.
Microsoft Entra External ID
External ID supports social identity providers.
Microsoft Entra B2B collaboration
Why wrong: B2B is for business partners, not social IdPs.
Microsoft Entra ID (tenant)
Why wrong: Entra ID does not natively support social IdPs.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra External ID
Microsoft Entra External ID (formerly Azure AD External Identities) is the correct solution because it is specifically designed to allow external users to authenticate using their own social identity providers (e.g., Google, Facebook) via OAuth 2.0 and OpenID Connect protocols. This configuration enables a custom application to accept sign-ins from these external identities without requiring them to have a Microsoft Entra ID account, using a dedicated external tenant or identity experience.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Microsoft Entra Connect
Why it's wrong here
Connect is for syncing on-premises directories.
Microsoft Entra External ID
Why this is correct
External ID supports social identity providers.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Entra B2B collaboration
Why it's wrong here
B2B is for business partners, not social IdPs.
Microsoft Entra ID (tenant)
Why it's wrong here
Entra ID does not natively support social IdPs.
Common exam traps
The trap here is that candidates often confuse Microsoft Entra B2B collaboration (which is for business-to-business guest access using work/school accounts) with Microsoft Entra External ID (which is for consumer-facing social identity providers), leading them to incorrectly select B2B collaboration.
Detailed technical explanation
Under the hood, Microsoft Entra External ID uses a dedicated tenant that acts as an identity provider (IdP) proxy, translating tokens from social IdPs (Google, Facebook) into tokens that your custom application can validate. This involves configuring OAuth 2.0 client IDs and secrets for each social IdP, and the External ID tenant handles the token exchange and claims mapping. A real-world scenario is a retail app that allows customers to sign in with their Google account; without External ID, you would need to implement custom OAuth flows and token validation, which External ID simplifies with a managed service.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Design identity, governance, and monitoring solutions — This question tests Design identity, governance, and monitoring solutions — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Entra External ID — Microsoft Entra External ID (formerly Azure AD External Identities) is the correct solution because it is specifically designed to allow external users to authenticate using their own social identity providers (e.g., Google, Facebook) via OAuth 2.0 and OpenID Connect protocols. This configuration enables a custom application to accept sign-ins from these external identities without requiring them to have a Microsoft Entra ID account, using a dedicated external tenant or identity experience.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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