- A
Configure a Conditional Access policy targeting guest users
Why wrong: Conditional Access policies control sign-in conditions and session controls (e.g., MFA), but do not limit directory discovery or application visibility.
- B
Enable 'External Identities' cross-tenant access settings
Why wrong: Cross-tenant access settings control inbound/outbound trust for B2B collaboration, not individual guest user permissions to view directory objects.
- C
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
Assign the Application User role to the vendor users
Why wrong: The Application User role is not a built-in role; app roles are used for authorization within an application, not for limiting directory visibility.
AZ-500 Manage identity and access Practice Question
This AZ-500 practice question tests your understanding of manage identity and access. 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. A key principle to apply: guest user access settings control directory object visibility for B2B guests.. 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.
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
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Set the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects'
Option C is correct because setting the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects' restricts external B2B users from enumerating the full directory, including other users and applications. This configuration ensures vendors can only access the specific application they are invited to, while preventing discovery of other directory objects, which aligns with the principle of least privilege for external identities.
Key principle: Guest user access settings control directory object visibility for B2B guests.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure a Conditional Access policy targeting guest users
Why it's wrong here
Conditional Access policies control sign-in conditions and session controls (e.g., MFA), but do not limit directory discovery or application visibility.
- ✗
Enable 'External Identities' cross-tenant access settings
Why it's wrong here
Cross-tenant access settings control inbound/outbound trust for B2B collaboration, not individual guest user permissions to view directory objects.
- ✓
Set the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects'
Why this is correct
This setting restricts guest users from browsing the directory, preventing them from seeing other users or applications beyond those they have access to.
Related concept
Guest user access settings control directory object visibility for B2B guests.
- ✗
Assign the Application User role to the vendor users
Why it's wrong here
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 traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Conditional Access policies (which control authentication conditions) with directory-level authorization settings (which control what guest users can see in the tenant), leading them to select Option A instead of the correct directory restriction configuration.
Detailed technical explanation
How to think about this question
Under the hood, the 'Guest user access' setting modifies the authorization behavior of Azure AD Graph and Microsoft Graph APIs for guest users. When set to 'limited', the guest user's token includes claims that restrict directory read operations, effectively blocking enumeration of users, groups, and applications beyond their own object and the specific resources they are assigned to. This setting is enforced at the directory level via the `authorizationPolicy` resource in Microsoft Graph, and it overrides any application-specific permissions for directory reads.
KKey Concepts to Remember
- Guest user access settings control directory object visibility for B2B guests.
- The 'limited' setting prevents guests from enumerating other users or applications.
- This setting is configured under Azure AD External Identities > External collaboration settings.
- It enhances security by preventing information leakage to external collaborators.
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
Guest user access settings control directory object visibility for B2B guests.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Review guest user access settings control directory object visibility for B2B guests., then practise related AZ-500 questions on the same topic to reinforce the concept.
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Manage identity and access — This question tests Manage identity and access — Guest user access settings control directory object visibility for B2B guests..
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' — Option C is correct because setting the 'Guest user access' level to 'Guest user access is limited to properties and memberships of directory objects' restricts external B2B users from enumerating the full directory, including other users and applications. This configuration ensures vendors can only access the specific application they are invited to, while preventing discovery of other directory objects, which aligns with the principle of least privilege for external identities.
What should I do if I get this AZ-500 question wrong?
Review guest user access settings control directory object visibility for B2B guests., then practise related AZ-500 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Guest user access settings control directory object visibility for B2B guests.
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Last reviewed: Jun 11, 2026
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