DP-700 Implement and Manage an Analytics Solution Practice Question
A data engineering team is using a service principal to automate the deployment and management of Fabric items via the REST API. Which THREE of the following actions must be completed to enable a service principal to work with Fabric APIs?
⚠ Common exam trap
Candidates often forget the requirement to add the service principal to a security group and enable the tenant setting, focusing only on the Entra ID registration step.
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
✓
Register an application in Microsoft Entra ID.
Using service principals for automation is a standard practice in enterprise environments. It requires a specific set of configuration steps across both Microsoft Entra ID and the Fabric Admin portal. Ensuring all these steps are completed is necessary for successful authentication and authorization of the automated scripts.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Register an application in Microsoft Entra ID.
Why this is correct
The first step is to create an application registration in Microsoft Entra ID. This provides the Application (client) ID and the secret or certificate needed for the service principal to authenticate against the Microsoft identity platform before attempting to call any Fabric-specific APIs.
- ✓
Create a new security group in Microsoft Entra ID and add the service principal to it.
Why this is correct
Fabric's tenant settings for service principals are applied to security groups rather than individual service principals. Therefore, you must place the service principal into a security group to enable the specific tenant-level permissions required for it to interact with the Fabric service.
- ✓
Enable the 'Allow service principals to use Fabric APIs' tenant setting.
Why this is correct
By default, service principal access is often disabled in the Fabric Admin portal. An administrator must explicitly enable the tenant setting that allows service principals (via their security groups) to use the APIs. Without this, all API calls from the service principal will be rejected.
- ✗
Grant the service principal the 'Global Administrator' role in Entra ID.
Why it's wrong here
Granting Global Administrator rights is a violation of the principle of least privilege and is not required for Fabric API access. Service principals only need the specific workspace-level roles or tenant-level API permissions necessary for the tasks they are designed to perform within the environment.
- ✗
Assign a Power BI Pro license directly to the service principal.
Why it's wrong here
Service principals do not require individual user licenses like Power BI Pro. Their access is governed by tenant settings and workspace roles. As long as the content is on a supported capacity, the service principal can perform actions without the overhead of per-user licensing costs.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This DP-700 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 DP-700 exam.