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A company adds and verifies the custom domain 'contoso.com' in their Microsoft 365 tenant. However, emails sent to new users at user@contoso.com bounce back. The existing MX record for contoso.com points to the on-premises mail server. What is the most likely cause of the bounce?

Question 1mediummultiple choice
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A company adds and verifies the custom domain 'contoso.com' in their Microsoft 365 tenant. However, emails sent to new users at user@contoso.com bounce back. The existing MX record for contoso.com points to the on-premises mail server. What is the most likely cause of the bounce?

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Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

The domain verification failed and needs to be repeated

Verification is a one-time process; if verified, it remains verified. Bounces are not due to verification issues.

B

Best answer

The MX record must be updated to point to Exchange Online

The MX record determines where incoming emails are sent. It must point to Exchange Online for delivery to Microsoft 365 mailboxes.

C

Distractor review

Users must be added to the domain in the admin center

Users are already assigned the domain; adding them again does not change routing.

D

Distractor review

The SPF record is missing or misconfigured

SPF records help prevent spoofing but do not affect initial email delivery; missing SPF can cause delivery issues but not outright bounces in this scenario.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Related practice questions

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More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

Question 1

A company recently added the custom domain 'contoso.com' to their Microsoft 365 tenant. Users report that they cannot receive external email sent to their new domain addresses. The administrator confirmed that the domain status shows 'Active' in the Microsoft 365 admin center. What is the most likely cause of this issue?

Question 2

A company has 500 users across Sales, Marketing, and IT departments. User objects are synced from on-premises Active Directory to Microsoft Entra ID using Azure AD Connect. Each department requires different Microsoft 365 license plans (e.g., Sales needs E3, Marketing needs Business Premium, IT needs E5). The administrator wants to automatically assign the appropriate license based on the department attribute without manual intervention. Which approach should the administrator use?

Question 3

A company has purchased 1000 Microsoft 365 E5 licenses and wants to automatically assign licenses to users based on their department attribute, which is synchronized from on-premises Active Directory. The department attribute is stored in Azure AD. Which automated method should the administrator use to achieve this?

Question 4

A company has just purchased Microsoft 365 Business Standard and added the custom domain 'fabrikam.com' to the tenant. They want to verify domain ownership. Which DNS record type must they add to their DNS provider?

Question 5

A company plans to migrate their email from an on-premises Exchange server to Exchange Online. They want to ensure that during the migration, mail sent to users who have already been migrated is delivered to Exchange Online, while mail for non-migrated users is delivered to on-premises. Which type of domain configuration should they use?

Question 6

A company has registered the custom domain 'contoso.com' and wants to host email for the subdomain 'sales.contoso.com' in Exchange Online. They have already verified the root domain. What additional step is required?

FAQ

Questions learners often ask

What does this MS-102 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: The MX record must be updated to point to Exchange Online — For email to be delivered to Exchange Online, the MX record for the domain must point to Exchange Online. If it still points to the on-premises server, emails are routed to the old server, which does not have the new mailboxes.

What should I do if I get this MS-102 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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