mediumMultiple Choice
Enable Self-Service Sign-Up for External Users in SharePoint Online
A company uses Microsoft Entra ID and SharePoint Online. They want to allow users from a partner organization (which also uses Microsoft Entra ID) to access a specific SharePoint Online site using their existing partner credentials. The partner users should not require new accounts to be created. Which Microsoft Entra ID feature should be configured?
⚠ Common exam trap
It's easy for candidates to confuse Microsoft Entra B2B collaboration with Azure AD B2C, mistakenly thinking both are for external users, but B2C is designed for consumer-facing apps with local identities, not for partner organizations using their existing Microsoft Entra ID credentials.
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 B2B collaboration
Microsoft Entra B2B collaboration allows you to invite external users from a partner organization to access your Microsoft Entra ID-integrated applications, such as SharePoint Online, using their own existing Microsoft Entra ID credentials. This feature leverages cross-tenant trust and does not require creating new user accounts in your tenant, fulfilling the requirement exactly.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Microsoft Entra B2B collaboration
Why this is correct
Microsoft Entra B2B collaboration is the correct solution because it enables you to invite users from external organizations to access SharePoint Online resources using their own Microsoft Entra ID or other identity credentials. When you add a guest via B2B, Microsoft Entra ID provisions a guest account in your tenant that can be assigned to SharePoint sites and groups, preserving the partner's identity and allowing you to apply conditional access and MFA. This is specifically designed for business-to-business collaboration, making it the appropriate mechanism for partner access.
- ✗
Azure AD B2C
Why it's wrong here
Azure AD B2C is a customer identity and access management (CIAM) service intended for external consumers of your applications, such as website visitors or mobile app users, not for business partners. B2C does not create guest user objects in your Microsoft Entra ID tenant that can be added to SharePoint Online permissions, nor does it support signing into Office 365 resources like SharePoint. It is solely for authenticating end-users to custom apps, so it is unsuitable for enabling a partner organization to access your SharePoint content.
- ✗
Microsoft Entra Domain Services
Why it's wrong here
Microsoft Entra Domain Services provides managed domain services such as domain join, group policy, and LDAP for legacy applications that require domain controllers, but it does not create a trust relationship or an authentication flow for external identities. It operates on your Microsoft Entra ID directory itself and cannot be used to invite or authenticate users from other organizations. Therefore, it has no role in granting partner users access to SharePoint Online.
- ✗
Organizational Relationships
Why it's wrong here
Organizational Relationships in Microsoft 365 are an Exchange-specific feature used to establish federation for sharing free/busy availability and calendar data between different Exchange organizations, both on-premises and cloud. They do not create guest accounts in Microsoft Entra ID, nor do they control authentication or authorization for SharePoint Online sites and documents. Consequently, configuring an organizational relationship would not help partners access SharePoint content.
Go deeper
Related to this question
Learn chapter
Microsoft 365 Tenant Setup
Key term
Microsoft Entra ID
Microsoft Entra ID is a cloud-based identity and access management service that lets employees sign in and access resources both inside and outside of your organization.
Key term
SharePoint Online
SharePoint Online is a cloud-based collaboration platform from Microsoft that lets teams create, store, organize, and share content securely from anywhere.
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