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A company uses Azure AD B2B collaboration to invite external vendors. They want to restrict the vendors to only be able to access a specific application, and prevent them from discovering other users or applications in the directory. Which configuration should they apply to the external users?

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A company uses Azure AD B2B collaboration to invite external vendors. They want to restrict the vendors to only be able to access a specific application, and prevent them from discovering other users or applications in the directory. Which configuration should they apply to the external users?

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

Configure a Conditional Access policy targeting guest users

Conditional Access policies control sign-in conditions and session controls (e.g., MFA), but do not limit directory discovery or application visibility.

B

Distractor review

Enable 'External Identities' cross-tenant access settings

Cross-tenant access settings control inbound/outbound trust for B2B collaboration, not individual guest user permissions to view directory objects.

C

Best answer

Set the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects'

This setting restricts guest users from browsing the directory, preventing them from seeing other users or applications beyond those they have access to.

D

Distractor review

Assign the Application User role to the vendor users

The Application User role is not a built-in role; app roles are used for authorization within an application, not for limiting directory visibility.

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

Related AZ-500 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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.

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: Set the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects' — By default, guest users in Azure AD have limited access to directory information. To prevent guests from enumerating the directory, you can set the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects' (or the more restrictive 'Guest user access is restricted'). This prevents them from seeing other users or applications beyond what they are explicitly granted access to. Application access is controlled via app assignments.

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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