The answer is to add the domain and verify ownership by adding a TXT record. This is the correct first step because Microsoft 365 requires proof that your organization controls the domain before it can be used for services like Exchange Online; the TXT record serves as a cryptographic challenge that only the DNS administrator can place, confirming ownership without disrupting existing services. On the MS-102 exam, this question tests your understanding of the domain onboarding workflow, often appearing as a scenario where candidates mistakenly try to change the UPN suffix or assign licenses first—a common trap. Remember that verification always precedes configuration: you cannot route email or create users with the new domain until the TXT record is validated. A helpful memory tip is "TXT before TXT"—the TXT record must be added before you can set the domain as the primary or default.
MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company has a Microsoft 365 tenant with the domain contoso.com. They acquire a subsidiary with the domain fabrikam.com and want to add it as an additional domain to the same tenant. The domain is already purchased and DNS management is available. What is the first step the administrator should take in the Microsoft 365 admin center?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Add the domain and verify ownership by adding a TXT record
To add an existing domain like fabrikam.com to a Microsoft 365 tenant, the first step is to add the domain in the Microsoft 365 admin center and then verify ownership by adding a TXT record to the domain's DNS zone. This verification proves the administrator controls the domain, which is a prerequisite for using it with Microsoft 365 services such as Exchange Online or SharePoint.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Add the domain and verify ownership by adding a TXT record
Why this is correct
Domain verification via TXT record is always the first step when adding a custom domain.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Create a new tenant for fabrikam.com
Why it's wrong here
A new tenant would create separate management silos; the requirement is to add to the existing tenant.
✗
Set up email forwarding from contoso.com to fabrikam.com
Why it's wrong here
Email forwarding is not part of domain addition; verification must occur first.
✗
Convert fabrikam.com to a federated domain
Why it's wrong here
Federation is an advanced configuration that requires the domain to be verified first.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse the order of operations and attempt to configure advanced features like federation or email routing before completing the mandatory domain verification step, which is always the first action required when adding a new domain to a tenant.
Detailed technical explanation
How to think about this question
Domain verification in Microsoft 365 relies on the administrator adding a specific TXT record (e.g., 'MS=msXXXXXXXX') to the domain's public DNS zone. The Microsoft 365 admin center then queries the DNS to confirm the record exists, which proves ownership per RFC 1035. This step is mandatory before any Microsoft 365 services can be provisioned for the domain, and it must be completed even if the domain is already registered elsewhere.
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.
TExam Day Tips
→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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-102 question in full detail.
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Add the domain and verify ownership by adding a TXT record — To add an existing domain like fabrikam.com to a Microsoft 365 tenant, the first step is to add the domain in the Microsoft 365 admin center and then verify ownership by adding a TXT record to the domain's DNS zone. This verification proves the administrator controls the domain, which is a prerequisite for using it with Microsoft 365 services such as Exchange Online or SharePoint.
What should I do if I get this MS-102 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO actions are required to configure a custom domain for your Microsoft 365 tenant?
medium
A.Add an SPF TXT record in the public DNS zone.
B.Add a CNAME record for autodiscover.
C.Add an MX record in the public DNS zone.
✓ D.Add the domain name in the Microsoft 365 admin center.
✓ E.Verify domain ownership by adding a TXT record provided by Microsoft.
Why D: Option D is correct because adding the custom domain name in the Microsoft 365 admin center is the first step to register the domain with the tenant. Option E is correct because Microsoft requires you to prove ownership of the domain by adding a specific TXT record (or sometimes a CNAME or MX record) to the public DNS zone; this verification step ensures only the domain owner can configure it for the tenant.
Variation 2. An administrator adds the custom domain 'adatum.com' to a new Microsoft 365 tenant. In the Microsoft 365 admin center, the domain status shows 'Pending verification'. Which type of DNS record must the administrator add to the public DNS zone to complete the domain ownership verification?
easy
✓ A.TXT record
B.MX record
C.CNAME record
D.SPF record
Why A: To verify domain ownership in Microsoft 365, you must add a TXT record containing a unique verification string provided by the Microsoft 365 admin center to the public DNS zone. The DNS provider checks for this TXT record, and when found, Microsoft 365 confirms you control the domain. This is a standard domain verification method defined in RFC 1035 and used by many cloud services.
Last reviewed: Jun 11, 2026
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
This MS-102 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-102 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.