MS-700 Configure and Manage a Teams Environment Practice Question
You are configuring communication settings for a company that needs to collaborate with a partner organization. You need to allow users to chat with the partner's users without adding them as guests in your Microsoft Entra ID. Which TWO actions must you perform? (Each correct answer presents part of the solution.)
⚠ Common exam trap
MS-700 often tests the confusion between External Access (federation, no guest account) and Guest access (B2B collaboration, requires a guest object in Microsoft Entra ID), causing candidates to pick 'Enable Guest access' when the scenario explicitly forbids guest accounts.
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
✓
Add the partner domain to the allowed list in External Access
External federation in Teams is controlled by the External Access (formerly external access/federation) settings, so option C is correct: adding the partner's domain to the allowed list in External Access permits your users to chat with users in that domain without creating guest accounts in your Microsoft Entra ID. Option E is also correct because federation is bidirectional — the partner tenant must likewise have External Access enabled and allow your domain, otherwise their users cannot communicate with yours. Options A and B are wrong because guest access and app setup policies govern guest membership and app availability, not federated chat, and the scenario explicitly avoids adding guests. Option D is wrong because a messaging policy controlling Giphy only affects message content features and has nothing to do with cross-tenant chat.
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 Teams admin center
Why it's wrong here
Guest access is used to allow external users to participate in teams, channels, and access shared resources like files within the host tenant. This requires creating a guest user object in Microsoft Entra ID, which contradicts the specific requirement to avoid adding external users as guests for simple chat communication.
- ✗
Create a new Teams App Setup policy
Why it's wrong here
App Setup policies are used to control how apps are deployed to users, including which apps are pinned to the Teams navigation bar. These policies do not have any impact on the ability of users to communicate with external domains or the configuration of federation settings between different organizations.
- ✓
Add the partner domain to the allowed list in External Access
Why this is correct
Adding the specific domain to the allowed list within the External Access settings ensures that communication is permitted with that organization. This configuration allows Teams users to search for and initiate chats with users in the partner domain using their email addresses without requiring guest account creation.
- ✗
Configure a Messaging policy to allow Giphy
Why it's wrong here
Messaging policies control features within the chat experience, such as the use of Giphys, memes, or the ability to delete sent messages. While these settings affect the user experience during a chat, they do not facilitate the underlying connection or authorization required to establish communication with external domains.
- ✓
Ensure the partner organization has External Access enabled
Why this is correct
External access is a bidirectional configuration that requires both participating organizations to have federation enabled. If the partner organization blocks external communication or does not include your domain in their allowed list, the chat request will fail regardless of the configuration on your own organization's Teams tenant.
About these practice questions
One of 211 original MS-700 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. 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.