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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?

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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?

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

Best answer

Add the domain and verify ownership by adding a TXT record

Domain verification via TXT record is always the first step when adding a custom domain.

B

Distractor review

Create a new tenant for fabrikam.com

A new tenant would create separate management silos; the requirement is to add to the existing tenant.

C

Distractor review

Set up email forwarding from contoso.com to fabrikam.com

Email forwarding is not part of domain addition; verification must occur first.

D

Distractor review

Convert fabrikam.com to a federated domain

Federation is an advanced configuration that requires the domain to be verified first.

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

Related MS-102 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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: Add the domain and verify ownership by adding a TXT record — The first step is to add the new domain in the Microsoft 365 admin center and verify ownership by adding a TXT record to the domain's DNS zone. Creating a new tenant is unnecessary and would cause isolation. Email forwarding and federation are later steps that require domain verification first.

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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