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A company uses Azure Active Directory and has guest users invited via B2B collaboration. The security team wants to require that all guest users from specific external organizations must complete multi-factor authentication (MFA) when accessing the company's SaaS applications. Which Conditional Access policy configuration should they use?

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A company uses Azure Active Directory and has guest users invited via B2B collaboration. The security team wants to require that all guest users from specific external organizations must complete multi-factor authentication (MFA) when accessing the company's SaaS applications. Which Conditional Access policy configuration should they use?

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Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

Create a policy that applies to 'All users' with a condition for 'Guest or external users' and a grant control of 'Require multi-factor authentication'.

Applying to 'All users' would also include internal users, which is not required. The policy should only target guest users.

B

Best answer

Create a policy that applies to 'Guest or external users' with a condition for 'External tenants' specifying the organizations, and a grant control of 'Require multi-factor authentication'.

This correctly scopes the policy to guest users from specific external tenants and enforces MFA as a grant control.

C

Distractor review

Create a policy that applies to 'All guest users' and assign it to the SaaS applications. Use a session control 'Use app enforced restrictions'.

Session controls do not enforce MFA; they are used for other restrictions like app protection policies. This does not meet the MFA requirement.

D

Distractor review

Create a policy that applies to 'Guest or external users' with a condition for 'Sign-in risk' set to 'Medium and above' and a grant control of 'Block access'.

This blocks access for risky sign-ins, but does not require MFA for all guest users as specified. It only applies to detected risks.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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.

Related practice questions

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More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

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Question 4

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Question 5

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Question 6

A SOC wants a Sentinel rule to include account, host, and IP entities so analysts can pivot during investigation. What should be configured in the analytics rule?

FAQ

Questions learners often ask

What does this AZ-500 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Create a policy that applies to 'Guest or external users' with a condition for 'External tenants' specifying the organizations, and a grant control of 'Require multi-factor authentication'. — Conditional Access policies can be scoped to guest users and external organizations. The 'Guest or external users' identity type allows targeting all guests. For specific organizations, the policy can include or exclude certain external tenants or domains. The grant control 'Require multi-factor authentication' enforces MFA. This solution does not require blocking other locations because the requirement is only for guests, not all users.

What should I do if I get this AZ-500 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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