SC-300 Implement and Manage User Identities Practice Question
A company wants to implement advanced identity management features for their users. You are evaluating the differences between Microsoft Entra ID P1 and P2 licenses. Which TWO features are ONLY available with the Microsoft Entra ID P2 license?
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
✓
Microsoft Entra ID Protection (Risk-based Conditional Access)
Microsoft Entra ID P2 includes all P1 features plus advanced identity protection and governance capabilities. Understanding these differences is crucial for administrators to ensure they have the necessary licensing for high-security environments, specifically regarding automated risk detection and administrative access control through Privileged Identity Management.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Self-Service Password Reset (SSPR) for cloud users
Why it's wrong here
Self-Service Password Reset for cloud-only users is available in the Free tier of Microsoft Entra ID. The P1 license adds the ability to write back passwords to on-premises Active Directory, but the basic functionality for cloud users does not require a P2 license for implementation in the tenant.
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Conditional Access based on user location and device state
Why it's wrong here
Conditional Access is a core feature of the Microsoft Entra ID P1 license. It allows administrators to create policies that evaluate signals like IP address, geographical location, and device compliance. While P2 adds risk-based signals, the base Conditional Access engine is fully functional within the P1 licensing tier.
- ✓
Microsoft Entra ID Protection (Risk-based Conditional Access)
Why this is correct
Identity Protection, which includes the ability to trigger policies based on 'User Risk' and 'Sign-in Risk' levels (High, Medium, Low), is a premium feature exclusive to the P2 license. It uses machine learning to detect compromised credentials and anomalous sign-in patterns to automatically protect the organization's identities.
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Application Proxy for accessing on-premises web applications
Why it's wrong here
The Application Proxy feature, which provides secure remote access to on-premises web applications without a VPN, is included in the Microsoft Entra ID P1 license. It is a powerful tool for hybrid environments, but it does not require the additional investment of a P2 license for deployment.
- ✓
Privileged Identity Management (PIM)
Why this is correct
Privileged Identity Management (PIM) is a P2-exclusive feature that allows for 'just-in-time' administrative access. It minimizes the risk of standing privileges by requiring administrators to request and justify the activation of their roles, often requiring MFA or approval before permissions are temporarily granted to their account.
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 SC-300 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 SC-300 exam.