MS-700 Manage Teams, Channels, Chats, and Apps Practice Question
Which TWO settings are required to enable guest access for a specific team?
⚠ Common exam trap
MS-700 often tests the misconception that a single setting (either org-wide or per-team) is sufficient; candidates forget that BOTH the tenant-level guest access setting and the team-level 'Allow guests' toggle must be enabled.
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
✓
Enable Guest Access in the Org-wide settings.
Option A is correct because guest access in Microsoft Teams must first be enabled at the tenant level via the Org-wide settings in the Teams admin center (or the equivalent Microsoft Entra ID/Microsoft 365 external collaboration settings), which acts as the master switch allowing any guest access to exist in the organization. Option C is correct because, once tenant-level guest access is on, the specific team must also have its own 'Allow guests' setting enabled in the team's settings (via Teams client or the Microsoft Teams admin center), since guest access is controlled per team and is off by default for new teams. Option B is incorrect because there is no 'Guest Access Policy' object that is assigned to a team; guest permissions are governed by tenant settings, per-team settings, and messaging policies, not a team-assigned guest policy. Option D is incorrect because sensitivity labels govern classification, encryption, and sharing/guest-related restrictions on the team, but they do not enable guest access. Option E is incorrect because creating a shared channel is a collaboration feature for sharing with people outside the team (including external members) and does not enable guest access for the team.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Enable Guest Access in the Org-wide settings.
Why this is correct
Before individual teams can accept guests, guest access must be enabled at the organization level. This is the global master switch that controls whether any guest functionality is permitted within your tenant, ensuring that all teams operate within the boundaries defined by your organizational security and compliance governance policies.
- ✗
Assign a Guest Access Policy to the team.
Why it's wrong here
There is no such thing as a 'Guest Access Policy' that is assigned to an individual team. Guest access is governed by organization-wide settings and the membership configuration of the team itself, not by applying a policy object to the team's configuration in the Teams Admin Center.
- ✓
Update the 'Allow guests' setting in the Team's settings.
Why this is correct
Once global guest access is enabled, the team owner or administrator must ensure that guest access is enabled for the specific team. This per-team toggle provides the final layer of control, preventing unauthorized guest additions to teams that should remain internal, thus ensuring that sensitive projects remain isolated.
- ✗
Configure a sensitivity label for the team.
Why it's wrong here
While sensitivity labels can block guest access, they are not the primary configuration method for enabling it. Enabling guest access is achieved through tenant-level settings and team-level toggles, making the sensitivity label an optional secondary control rather than a core requirement for allowing guests into a team.
- ✗
Create a shared channel.
Why it's wrong here
Shared channels are a different mechanism for collaboration that does not require traditional guest membership. Creating a shared channel is not a prerequisite or a valid method for enabling standard guest access, as it addresses a different collaboration scenario involving B2B direct connect and specific channel access.
About these practice questions
Courseiva writes every MS-700 question from scratch — 211 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
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 MS-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 MS-700 exam.