- A
Add the domain as an accepted domain in Exchange Online
Why wrong: Adding the domain as an accepted domain is part of email configuration, but it requires the domain to be verified first. Verification takes precedence.
- B
Set the custom domain as the default domain for new users
Why wrong: Setting the default domain is a subsequent step after verification. The domain cannot be set as default until ownership is confirmed.
- C
Verify domain ownership by adding a DNS TXT record
Microsoft requires a TXT record verification to prove control over the domain. This is the first mandatory step. After verification, other configurations like email setup become possible.
- D
Create user accounts with usernames ending with the custom domain
Why wrong: User accounts cannot be created with the custom domain until verification is complete. Attempting to do so will fail.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
After adding a custom domain name to a Microsoft 365 tenant, what is the first step the administrator must complete before users can sign in using the custom domain?
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
Verify domain ownership by adding a DNS TXT record
Before a custom domain can be used for user sign-ins or email routing in Microsoft 365, the administrator must prove ownership of the domain. This is done by adding a specific DNS TXT record provided by the Microsoft 365 domain setup wizard. Until the TXT record is verified, the domain remains unverified and cannot be used for any Microsoft 365 services.
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 as an accepted domain in Exchange Online
Why it's wrong here
Adding the domain as an accepted domain is part of email configuration, but it requires the domain to be verified first. Verification takes precedence.
- ✗
Set the custom domain as the default domain for new users
Why it's wrong here
Setting the default domain is a subsequent step after verification. The domain cannot be set as default until ownership is confirmed.
- ✓
Verify domain ownership by adding a DNS TXT record
Why this is correct
Microsoft requires a TXT record verification to prove control over the domain. This is the first mandatory step. After verification, other configurations like email setup become possible.
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 user accounts with usernames ending with the custom domain
Why it's wrong here
User accounts cannot be created with the custom domain until verification is complete. Attempting to do so will fail.
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 they can add the domain to Exchange Online or create users first, but Microsoft 365 strictly enforces domain verification as the prerequisite for all subsequent domain-related configurations.
Detailed technical explanation
How to think about this question
Domain verification in Microsoft 365 relies on the DNS TXT record containing a unique verification token generated by the Microsoft 365 portal. The system periodically queries the public DNS for this record; once found, it marks the domain as verified. This process follows RFC 1035 for DNS TXT records and ensures that only the domain owner can authorize its use, preventing domain spoofing and unauthorized tenant association.
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: Verify domain ownership by adding a DNS TXT record — Before a custom domain can be used for user sign-ins or email routing in Microsoft 365, the administrator must prove ownership of the domain. This is done by adding a specific DNS TXT record provided by the Microsoft 365 domain setup wizard. Until the TXT record is verified, the domain remains unverified and cannot be used for any Microsoft 365 services.
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 →
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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