- A
Update the MX record in the DNS to point to Microsoft 365 with the custom domain.
Why wrong: MX records determine email routing, not the default user domain.
- B
In the admin center, go to Settings > Domains, select the custom domain, and click 'Set as default'.
This changes the default domain for new users to the custom domain.
- C
Use the Exchange admin center to set the default email address policy to use the custom domain.
Why wrong: The default domain for new users is set in the Microsoft 365 admin center, not Exchange admin center.
- D
For each new user, manually add an email alias with the custom domain and remove the onmicrosoft.com alias.
Why wrong: This would work but is not efficient; the default domain setting automates this.
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.
A company has purchased Microsoft 365 Business Standard and added the custom domain 'fabrikam.com' to the tenant. The company wants all new users to have 'fabrikam.com' as their default email domain instead of the onmicrosoft.com domain. How should the administrator achieve this?
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
In the admin center, go to Settings > Domains, select the custom domain, and click 'Set as default'.
Option B is correct because the Microsoft 365 admin center provides a dedicated setting under Settings > Domains to mark a custom domain as the default email domain. Once set as default, all new users will automatically receive a primary email address using that domain instead of the initial onmicrosoft.com domain, without requiring manual changes or additional configuration.
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.
- ✗
Update the MX record in the DNS to point to Microsoft 365 with the custom domain.
Why it's wrong here
MX records determine email routing, not the default user domain.
- ✓
In the admin center, go to Settings > Domains, select the custom domain, and click 'Set as default'.
Why this is correct
This changes the default domain for new users to the custom domain.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use the Exchange admin center to set the default email address policy to use the custom domain.
Why it's wrong here
The default domain for new users is set in the Microsoft 365 admin center, not Exchange admin center.
- ✗
For each new user, manually add an email alias with the custom domain and remove the onmicrosoft.com alias.
Why it's wrong here
This would work but is not efficient; the default domain setting automates this.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DNS record management (like MX records) with tenant-level domain configuration, or assume that Exchange email address policies are the only way to control default domains, when in fact the admin center's 'Set as default' option is the correct and simplest method for new users.
Detailed technical explanation
How to think about this question
When you set a custom domain as default in the Microsoft 365 admin center, the tenant's default email domain attribute is updated, which influences the email address policy for new users. This setting is stored in Azure AD and affects the primary SMTP address generation during user provisioning, overriding the default onmicrosoft.com domain. In a real-world scenario, if you have multiple custom domains, only one can be the default, and this setting does not retroactively change existing users' primary addresses.
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.
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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: In the admin center, go to Settings > Domains, select the custom domain, and click 'Set as default'. — Option B is correct because the Microsoft 365 admin center provides a dedicated setting under Settings > Domains to mark a custom domain as the default email domain. Once set as default, all new users will automatically receive a primary email address using that domain instead of the initial onmicrosoft.com domain, without requiring manual changes or additional configuration.
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.
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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