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Deploy and manage a Microsoft 365 tenantmediumMultiple ChoiceObjective-mapped

MS-102 Deploy and manage a Microsoft 365 tenant Practice Question

An administrator recently added a custom domain 'tailspintoys.com' to their Microsoft 365 tenant and verified it. They now need to configure the domain so that all recipient email addresses for 'info@tailspintoys.com' are delivered to a shared mailbox in Exchange Online. The domain is currently set as internal relay. What should the administrator do first to route email for this domain to Exchange Online?

⚠ Common exam trap

Test-takers frequently think updating the MX record (Option A) is the first step to route email to Exchange Online, but they overlook that the domain type must be changed to 'Authoritative' first; otherwise, Exchange Online will not deliver messages to cloud recipients even after the MX record is pointed correctly.

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

Change the domain type from 'Internal relay' to 'Authoritative' in Exchange admin center

When a domain is set to 'Internal relay' in Exchange Online, the service expects to relay messages to an on-premises server for that domain. To have Exchange Online accept and deliver messages directly to a shared mailbox (or any hosted recipient), the domain must be changed to 'Authoritative'. This tells Exchange Online that it is the final destination for all recipients in that domain, enabling local delivery.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Update the MX record at the DNS registrar to point to Exchange Online

    Why it's wrong here

    Updating the MX record at the DNS registrar makes the internet point inbound SMTP traffic for tailspintoys.com to Exchange Online, but this is a downstream mail-flow step. Before doing so, the accepted domain must be set as authoritative so Exchange Online knows it owns routing for the domain and will accept messages for recipients rather than relaying them back to the previous mail system. If you change MX first while the domain is still marked as Internal relay, mail can loop, bounce, or remain stuck in queue because Exchange Online still believes another system is responsible for that domain. The MX update is necessary only after the domain type change is completed.

  • Change the domain type from 'Internal relay' to 'Authoritative' in Exchange admin center

    Why this is correct

    In the Exchange admin center, open Mail flow > Accepted domains, select the tailspintoys.com entry, and set its type to Authoritative. This tells Exchange Online that it is the only authorized mail system for that domain, so it will accept all inbound messages and attempt to deliver them to valid mailboxes in the organization, while generating non-delivery reports for unknown recipients. This is the required first configuration task because neither creating recipients nor updating MX records will make Exchange Online the owner of the address space until the accepted domain type is changed.

  • Create the shared mailbox 'info@tailspintoys.com' in Exchange Online

    Why it's wrong here

    Creating the shared mailbox info@tailspintoys.com does not make Exchange Online authoritative for the domain and therefore does not ensure mail is routed correctly. A shared mailbox is only a recipient object that must have a valid, verified domain as its email address, but if the accepted domain is still in Internal relay mode, messages to info@ may be relayed to the on-premises/third-party system or rejected because Exchange Online does not consider itself responsible for the domain. Provisioning a shared mailbox is a post-domain-change action; it should follow the authoritative configuration, not replace it.

  • Disable the internal relay option for the domain in the Microsoft 365 admin center

    Why it's wrong here

    There is no 'Internal relay' toggle in the Microsoft 365 admin center; the mail-routing behavior for an accepted domain is controlled by the domain type in the Exchange admin center, under Mail flow > Accepted domains. 'Internal relay' is one of the accepted domain types, not an optional checkbox that can simply be switched off, and disabling a relay flag would not convert the domain to authoritative. The correct change is to edit the accepted domain and select 'Authoritative' (or use Set-AcceptedDomain in PowerShell), which changes both how Exchange Online advertises responsibility for the domain and how it routes unknown recipients.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.