MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
An organization uses a third-party SaaS application that supports SAML-based single sign-on. The application is not in the Azure AD gallery. What is the first step to configure SSO?
⚠ Common exam trap
Watch out — candidates often confuse the 'Integrated apps' section in the Microsoft 365 admin center with Azure AD enterprise applications, but the former is for managing add-ins and the latter is the correct location for SAML SSO configuration.
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
✓
Create a new enterprise application from the 'Non-gallery application' option in Azure AD
The correct first step is to create a new enterprise application from the 'Non-gallery application' option in Azure AD. This allows you to configure SAML-based SSO for any third-party application that supports SAML 2.0, even if it is not listed in the Azure AD gallery. The non-gallery application template provides the necessary endpoints and metadata to establish trust between Azure AD and the SaaS application.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Create a new enterprise application from the 'Non-gallery application' option in Azure AD
Why this is correct
In Azure AD, when a third-party SaaS application supports SAML 2.0 but is not pre-configured in the gallery, the correct first administrative action is to select "Create a new application" and choose "Non-gallery application" from the Azure AD Enterprise applications blade. This action provisions a dedicated service principal in your tenant that accepts SAML requests and provides the Azure AD identifier, reply URL, and certificate required to complete SAML SSO configuration on the SaaS vendor's side. This templates the identity provider relationship before you can assign users or test SSO.
- ✗
Configure Azure AD Connect to sync on-premises users
Why it's wrong here
Azure AD Connect is an identity synchronization tool that replicates on-premises Active Directory objects—users, groups, and password hashes—into Azure AD. It does not create or register an enterprise application, nor does it establish the SAML trust between Azure AD and an external SaaS provider. While syncing users may eventually be necessary if those users need access, the initial step for integrating any SAML application is always to create the corresponding enterprise application in Azure AD, not to alter the sync topology.
- ✗
Add the application in the Microsoft 365 admin center under 'Integrated apps'
Why it's wrong here
The Microsoft 365 admin center's "Integrated apps" section is designed for managing Office 365 add-ins, Teams apps, and app permissions within the Microsoft 365 ecosystem, not for configuring enterprise SAML federation. A third-party SAML SaaS app must be registered in the Azure AD Enterprise applications console, because that is where the SAML endpoints, signing certificate, and user assignment are stored and managed. Using the admin center will only handle OAuth or delegated permissions scenarios, and it will not create the required service principal for SAML SSO.
- ✗
Create a custom role in Azure AD for the application
Why it's wrong here
Custom roles in Azure AD are administrative role definitions that grant delegated permissions to manage directory resources; they determine what a user can administer, not how the application authenticates. Creating a custom role for a specific application is unrelated to SAML SSO configuration and is only necessary if you want to delegate admin access to that app's management to other administrators. Even then, you would create the enterprise application first, then optionally build a role around managing it.
Go deeper
Related to this question
Learn chapter
Azure AD Seamless SSO
Key term
Single sign-on
Single sign-on (SSO) is an authentication method that allows a user to log in once and gain access to multiple applications or systems without re-entering credentials.
Key term
SSO
Single Sign-On (SSO) is an authentication process that allows a user to access multiple applications or systems with one set of login credentials.
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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.