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MD-102 An enterprise administrator for Contoso Ltd Practice Question
You are an enterprise administrator for Contoso Ltd. You need to configure Microsoft 365 tenant-wide settings for external collaboration. Which TWO actions should you take to meet the following goals: (1) allow only specific external domains to collaborate with your organization, and (2) ensure that external users are required to sign in with multi-factor authentication (MFA) before accessing shared resources?
⚠ Common exam trap
A common mix-up: candidates confuse domain allowlists with blocklists, or assume that B2B direct connect settings (which manage cross-tenant access for Teams) can enforce MFA, when in fact only Conditional Access policies provide that control for external users accessing shared resources.
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
✓
Configure the SharePoint and OneDrive domain allowlist to include only the approved external domains.
Configuring the SharePoint and OneDrive domain allowlist restricts external sharing to only the approved external domains, meeting the first goal. Option D is correct because a Conditional Access policy in Azure AD can require MFA for all external users, satisfying the second goal by enforcing authentication requirements before access to shared resources.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Disable external sharing in the Microsoft 365 admin center for all workloads.
Why it's wrong here
This would prevent any external sharing, which contradicts goal 1.
- ✓
Configure the SharePoint and OneDrive domain allowlist to include only the approved external domains.
Why this is correct
This restricts sharing to only the domains in the allowlist, meeting goal 1.
- ✗
Configure the SharePoint and OneDrive domain blocklist to exclude all external domains except the approved ones.
Why it's wrong here
Blocklists are used to block specific domains, not to allow only specific ones.
- ✓
Create a Conditional Access policy in Azure AD that requires MFA for all external users accessing your tenant.
Why this is correct
This enforces MFA for external users, meeting goal 2.
- ✗
Enable B2B direct connect in the cross-tenant access settings for the approved external domains.
Why it's wrong here
B2B direct connect is for Teams Connect shared channels and does not enforce MFA for external users.
Go deeper
Related to this question
Learn chapter
Introduction to Endpoint Management in Microsoft 365
Key term
Conditional access
Conditional access is a security framework that evaluates signals like user location, device health, and risk level to grant or block access to resources in real time.
Key term
Policy
A policy is a set of rules or guidelines that defines how an organization manages, secures, and operates its IT systems and services.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MD-102 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MD-102 exam.