A company has purchased Microsoft 365 Business Premium and added a custom domain 'contoso.com' to the tenant. They want all new users to have email addresses like user@contoso.com instead of the default onmicrosoft.com domain. What should the administrator do 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.
Best answer
Set the custom domain as the default domain in the Domains settings.
Setting a custom domain as default assigns that domain to new user email addresses automatically.
Distractor review
Add a DNS TXT record for the custom domain.
TXT records are used for domain verification, not for setting the default email domain.
Distractor review
Change the primary domain in the tenant's organization profile.
The primary domain is the domain used when the tenant was created; it does not control default email for new users.
Distractor review
Update the MX record for the custom domain to point to Exchange Online.
MX records control mail flow, not the default email address for new user creation.
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: Set the custom domain as the default domain in the Domains settings. — In the Microsoft 365 admin center, under Domains, an administrator can set a custom domain as the default domain. This ensures that any new user created will automatically receive an email address using that domain. DNS TXT records are used for domain ownership verification but do not affect default email addresses. The primary domain is a concept related to the initial domain used for the tenant, but the default domain setting is what controls the suffix for new users. MX records control mail routing, not the default address.
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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