The answer is to enable 'Azure AD-only authentication' on the Azure SQL logical server. This server-level setting enforces that every connection to your Azure SQL Database must use Microsoft Entra ID authentication, completely blocking any SQL authentication attempts—even if legacy SQL logins still exist in the system. By flipping this toggle, you guarantee that no SQL authentication users can be created or used, directly satisfying a security policy that demands all connections be Entra ID-based. On the DP-300 exam, this scenario tests your understanding of how Azure SQL Database separates authentication enforcement at the logical server level versus the database level; a common trap is assuming you need to manually delete SQL logins or set database-scoped configurations. Instead, remember that the server-level 'Azure AD-only authentication' setting acts as a master switch that overrides all lower-level permissions. Memory tip: think of it as the "Entra ID bouncer" at the server door—once enabled, no SQL credentials get past the entrance, regardless of what’s written on the guest list inside.
DP-300 Plan and implement data platform resources Practice Question
This DP-300 practice question tests your understanding of plan and implement data platform resources. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 company is deploying a new application that uses an Azure SQL Database. The security policy requires that all connections use Microsoft Entra ID authentication and that no SQL authentication users are created. Which server-level setting should you enforce?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable 'Azure AD-only authentication' on the Azure SQL logical server.
Option C is correct because enabling 'Azure AD-only authentication' on the Azure SQL logical server enforces that all connections must use Microsoft Entra ID authentication and blocks any SQL authentication attempts, even if SQL logins exist. This setting directly meets the security policy requirement that no SQL authentication users are created and all connections use Entra ID.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Set the database to use contained database authentication.
Why it's wrong here
Contained database authentication is not related to enforcing Entra ID only.
✗
Configure a server-level firewall rule to allow only Entra ID IPs.
Why it's wrong here
Firewall controls network access, not authentication type.
✓
Enable 'Azure AD-only authentication' on the Azure SQL logical server.
Why this is correct
This prevents SQL authentication connections.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set the Entra ID admin for the server and disable SQL authentication.
Why it's wrong here
There is no direct disable for SQL authentication; you must enable Azure AD-only authentication.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume setting the Entra ID admin and disabling SQL authentication manually is sufficient, but the 'Azure AD-only authentication' property is a separate, explicit enforcement mechanism that must be enabled to fully block SQL authentication at the server level.
Detailed technical explanation
How to think about this question
The 'Azure AD-only authentication' setting is a server-level property that, when enabled, rejects any connection attempt that does not use Microsoft Entra ID authentication, regardless of whether SQL logins exist. Under the hood, this is enforced by the Azure SQL gateway, which checks the authentication token before allowing the connection to proceed. In a real-world scenario, if this setting is not enabled, a compromised SQL login (even if disabled) could be re-enabled by an attacker with elevated permissions, bypassing the intended security posture.
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.
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
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this DP-300 question in full detail.
Plan and implement data platform resources — This question tests Plan and implement data platform resources — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable 'Azure AD-only authentication' on the Azure SQL logical server. — Option C is correct because enabling 'Azure AD-only authentication' on the Azure SQL logical server enforces that all connections must use Microsoft Entra ID authentication and blocks any SQL authentication attempts, even if SQL logins exist. This setting directly meets the security policy requirement that no SQL authentication users are created and all connections use Entra ID.
What should I do if I get this DP-300 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your company is deploying a new application that will use Azure SQL Database. You need to ensure that all connections to the database use Microsoft Entra ID authentication. Which step is required to enable this?
easy
✓ A.Configure an Entra ID administrator for the Azure SQL logical server.
B.Enable the Azure SQL Database firewall to allow only Entra ID IP addresses.
C.Create a contained database user mapped to an Entra ID identity.
D.Set the database to read-only mode.
Why A: To enforce Microsoft Entra ID authentication for all connections to Azure SQL Database, you must first configure an Entra ID administrator at the logical server level. This step establishes the server’s trust relationship with the Entra ID tenant, enabling token-based authentication using OAuth 2.0. Without this administrator, Entra ID authentication cannot be used, and only SQL authentication would be available.
Last reviewed: Jun 24, 2026
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