This AZ-500 practice question tests your understanding of secure 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. 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.
You are designing a secure access solution for an Azure App Service web application. The application uses Microsoft Entra ID for authentication. You need to ensure that only users from specific partner organizations can access the app. Which configuration should you use?
Use a custom domain for the app
Why wrong: Custom domain does not control partner access.
Configure the app to accept tokens from the partner tenants as external identity providers
This enables B2B collaboration with partner tenants.
Block all external users
Why wrong: Blocking all external users would prevent partner access.
Require multi-factor authentication for all users
Why wrong: MFA does not restrict access to specific partners.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Configure the app to accept tokens from the partner tenants as external identity providers
Option B is correct because Azure App Service can be configured to accept tokens from multiple Microsoft Entra ID tenants as external identity providers. This allows users from specific partner organizations to authenticate using their own Entra ID tenant, while the app validates the tokens and grants access only to those partner tenants you explicitly trust.
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.
Use a custom domain for the app
Why it's wrong here
Custom domain does not control partner access.
Configure the app to accept tokens from the partner tenants as external identity providers
Why this is correct
This enables B2B collaboration with partner tenants.
Related concept
Read the scenario before looking for a memorised answer.
Block all external users
Why it's wrong here
Blocking all external users would prevent partner access.
Require multi-factor authentication for all users
Why it's wrong here
MFA does not restrict access to specific partners.
Common exam traps
The trap here is that candidates often confuse 'external identity providers' with 'blocking external users' or 'MFA', not realizing that the correct approach is to explicitly allow specific partner tenants as identity providers rather than applying a blanket security policy.
Detailed technical explanation
Under the hood, Azure App Service integrates with Microsoft Entra ID via the 'Authentication / Authorization' (EasyAuth) module. To allow partner tenants, you add them as 'Allowed Token Audiences' or configure the app registration to accept tokens from those tenants by setting the 'Issuer URL' or using the 'Additional login parameters' to include the partner tenant IDs. The app validates the 'iss' claim in the JWT token to ensure it matches one of the trusted tenants, effectively implementing tenant-level access control without custom code.
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
Secure identity and access — This question tests Secure identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Configure the app to accept tokens from the partner tenants as external identity providers — Option B is correct because Azure App Service can be configured to accept tokens from multiple Microsoft Entra ID tenants as external identity providers. This allows users from specific partner organizations to authenticate using their own Entra ID tenant, while the app validates the tokens and grants access only to those partner tenants you explicitly trust.
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 25, 2026
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