SC-300 Implement and Manage User Identities Practice Question
You need to configure B2B collaboration settings in Microsoft Entra ID to restrict external access. The solution must meet the following requirements: 1. Allow users to invite guests only from the domain 'fabrikam.com'. 2. Prevent guests from searching the directory for other users. Which TWO settings should you configure?
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
✓
Set External user read permissions to 'Guest users are limited to properties and memberships of their own directory objects'.
B2B collaboration settings provide granular control over how external users interact with your directory. Restricting invitations to specific domains is a common security requirement for sensitive environments. Similarly, limiting directory search capabilities for guests prevents data harvesting and ensures that external users can only interact with the specific people or resources they have been assigned.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Set External user read permissions to 'Guest users are limited to properties and memberships of their own directory objects'.
Why this is correct
This setting is the most restrictive level of directory visibility for external users in Entra ID. It prevents guests from browsing the full list of users, groups, or other directory objects, effectively isolating them to only the specific resources and profiles they are directly associated with for work.
- ✓
Add 'fabrikam.com' to the Collaboration restrictions list and set the policy to 'Allow invitations only to the specified domains'.
Why this is correct
Setting the collaboration restriction to an allow-list effectively blocks invitations to any domain not explicitly mentioned. This is a robust security measure that ensures users can only collaborate with approved partner organizations, preventing the accidental or malicious invitation of unauthorized personal or competitor email addresses to the tenant.
- ✗
Configure a Cross-tenant access policy for 'fabrikam.com' with B2B direct connect enabled.
Why it's wrong here
B2B direct connect is specifically designed for mutual collaboration in Teams Shared Channels and does not govern standard B2B guest invitations. While it facilitates collaboration, it does not address the requirement to restrict the search capabilities of guest users who are invited via the standard B2B flow.
- ✗
Enable the 'Member users and users assigned to specific admin roles can invite guest users' setting.
Why it's wrong here
This setting controls who inside your organization has the permission to initiate a guest invitation, but it does not restrict which external domains can be invited. It focuses on internal delegation of authority rather than the external domain filtering or directory visibility requirements specified in the scenario.
- ✗
Create a Conditional Access policy that blocks all external users except those from 'fabrikam.com'.
Why it's wrong here
Conditional Access policies evaluate signals at the time of sign-in but do not prevent the initial invitation or limit directory search behavior. While it can block access to applications, it is not the correct mechanism for managing invitation domain restrictions or the default directory-level permissions for guests.
About these practice questions
This SC-300 question is part of Courseiva's 17-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam 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 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.