- A
Add the domain in the Microsoft 365 admin center.
Adding the domain initiates the verification process and is required before any other DNS or licensing steps.
- B
Create an SPF record for the domain.
Why wrong: SPF records are configured after the domain is verified and you start sending email, not as a first step.
- C
Create a MX record pointing to Exchange Online.
Why wrong: MX records are created after the domain is verified and you want to route email to Exchange Online.
- D
Assign Microsoft 365 licenses to users with @fabrikam.com addresses.
Why wrong: Licenses are assigned after the domain is verified and users are created with that domain.
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. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
An administrator wants to add a custom domain 'fabrikam.com' to a new Microsoft 365 tenant. What is the first step the administrator should perform?
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 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
Add the domain in the Microsoft 365 admin center.
The first step to add a custom domain to a Microsoft 365 tenant is to add the domain in the Microsoft 365 admin center. This initiates the domain verification process, where Microsoft provides a TXT record or MX record that the administrator must add to the domain's DNS hosting provider to prove ownership. Without completing this verification step, no other domain-related configurations (such as SPF, MX records, or user licensing) can proceed.
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 in the Microsoft 365 admin center.
Why this is correct
Adding the domain initiates the verification process and is required before any other DNS or licensing steps.
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 an SPF record for the domain.
Why it's wrong here
SPF records are configured after the domain is verified and you start sending email, not as a first step.
- ✗
Create a MX record pointing to Exchange Online.
Why it's wrong here
MX records are created after the domain is verified and you want to route email to Exchange Online.
- ✗
Assign Microsoft 365 licenses to users with @fabrikam.com addresses.
Why it's wrong here
Licenses are assigned after the domain is verified and users are created with that domain.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the order of operations, thinking that DNS records like SPF or MX must be configured before the domain is added, when in fact the domain must first be verified via a TXT record in the admin center before any other DNS changes can be applied.
Detailed technical explanation
How to think about this question
Under the hood, the domain verification process uses a DNS TXT record with a unique verification string generated by Microsoft 365. The administrator must add this TXT record to the domain's DNS zone, and Microsoft 365 periodically queries the DNS to confirm ownership. This step is mandatory because it prevents unauthorized users from claiming domains they do not control, as per RFC 1035 and Microsoft's domain ownership validation protocol. A real-world scenario where this matters is when an organization has multiple DNS providers or subdomains, requiring careful placement of the verification record.
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.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Deploy and manage a Microsoft 365 tenant — study guide chapter
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FAQ
Questions learners often ask
What does this MS-102 question test?
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 in the Microsoft 365 admin center. — The first step to add a custom domain to a Microsoft 365 tenant is to add the domain in the Microsoft 365 admin center. This initiates the domain verification process, where Microsoft provides a TXT record or MX record that the administrator must add to the domain's DNS hosting provider to prove ownership. Without completing this verification step, no other domain-related configurations (such as SPF, MX records, or user licensing) can proceed.
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
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Last reviewed: Jun 11, 2026
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.
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