MS-700 Manage Teams, Channels, Chats, and Apps Practice Question
Your organization wants to automate team membership based on the 'Department' attribute in Microsoft Entra ID. You create a new team and need to ensure the membership stays updated automatically. What is a requirement for this configuration?
⚠ Common exam trap
The trap is focusing on team visibility (Public vs Private) or admin roles instead of recognizing that dynamic membership is a property of the underlying Microsoft 365 Group, not the team itself.
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
✓
The underlying Microsoft 365 Group must use Dynamic User membership.
Dynamic membership for a team is achieved by configuring the underlying Microsoft 365 Group to use Dynamic User membership, where membership is automatically maintained based on user attributes like Department. The team must be created from that group or the group's membership rule must be set; Microsoft Entra ID evaluates the rule and adds/removes members automatically.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The team must be a Public team.
Why it's wrong here
The privacy setting of a team (Public or Private) is independent of its membership type. A private team can have dynamic membership just as easily as a public one. The privacy setting only dictates who can discover the team and view its content, not the mechanism by which users are added to the group's roster.
- ✓
The underlying Microsoft 365 Group must use Dynamic User membership.
Why this is correct
Teams use Microsoft 365 Groups for their membership. By changing the membership type of the group from 'Assigned' to 'Dynamic User' and defining a rule (e.g., user.department -eq 'Sales'), the membership becomes automated. This requires an Microsoft Entra ID P1 license for each unique user that is a member of one or more dynamic groups.
- ✗
The team owner must have the Global Administrator role.
Why it's wrong here
Team owners do not need administrative roles to manage a team, and in fact, dynamic membership removes the owner's ability to manually add or remove members. The setup of the dynamic rule must be performed by an administrator in the Azure portal, but the ongoing operation of the team does not require any specific roles.
- ✗
The team must have at least one guest user.
Why it's wrong here
Dynamic membership does not require the presence of guest users. It is a feature used primarily for internal employee management based on directory attributes. While you can write dynamic rules that include or exclude guests, they are not a prerequisite for the feature to function for your internal department-based team automation needs.
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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 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.