easyMultiple ChoiceObjective-mapped
Enable Self-Service Sign-Up for External Users in SharePoint Online
An administrator needs to allow external users from a partner company to sign up for access to a SharePoint Online site using their own Azure AD accounts. Which configuration should the administrator enable?
Quick Answer
The answer is to enable 'External identities' > 'Self-service sign-up' in Azure AD. This configuration is correct because it allows external users from a partner company to sign up for access to a SharePoint Online site using their own Azure AD accounts without requiring manual admin intervention, as the self-service sign-up flow automatically creates guest user objects in your tenant. On the Microsoft 365 Administrator MS-102 exam, this scenario tests your understanding of Azure AD External Identities and how they integrate with SharePoint Online’s sharing model; a common trap is confusing this with SharePoint’s external sharing settings, which control site-level permissions but not the identity provisioning process. Remember that self-service sign-up handles the *creation* of guest accounts, while SharePoint external sharing controls *access* to content. A useful memory tip is “SSU for IDs, SharePoint for access”—self-service sign-up provisions the identity, then SharePoint policies govern what they can see.
⚠ Common exam trap
Candidates often confuse 'self-service sign-up' with 'cross-tenant access policies' or 'email OTP,' thinking that any guest authentication method enables self-service sign-up, but only the explicit self-service sign-up feature creates the automated user provisioning flow.
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
✓
Enable 'External identities' > 'Self-service sign-up' in Azure AD
Enabling 'Self-service sign-up' in Azure AD External Identities allows external users to sign up for access to applications (including SharePoint Online sites) using their own Azure AD accounts without manual admin intervention. This feature creates guest user objects automatically when the external user completes the sign-up flow, which satisfies the requirement for partner users to sign up using their existing Azure AD credentials.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable 'Email one-time passcode authentication' for guests
Why it's wrong here
Email one-time passcode is an authentication method for users without Azure AD accounts, not for allowing self-service sign-up.
- ✓
Enable 'External identities' > 'Self-service sign-up' in Azure AD
Why this is correct
This setting allows external users to sign up for access to resources using their own Azure AD or Microsoft account identities.
- ✗
Configure a cross-tenant access policy for the partner tenant
Why it's wrong here
Cross-tenant access policies control inbound/outbound trust settings, but don't enable self-service sign-up; users still need to be invited or sign up.
- ✗
Create guest user accounts manually in Azure AD
Why it's wrong here
Manual creation does not allow self-service sign-up; the requirement is for users to sign up themselves.
Go deeper
Related to this question
About these practice questions
One of 241 original MS-102 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more way this is tested on MS-102
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company uses Azure AD and SharePoint Online. They want to allow users from a partner organization (which also uses Azure AD) to access a specific SharePoint Online site using their existing partner credentials. The partner users should not require new accounts to be created. Which Azure AD feature should be configured?
medium- ✓ A.Azure AD B2B collaboration
- B.Azure AD B2C
- C.Azure AD Domain Services
- D.Organizational Relationships
Why A: Azure AD B2B collaboration allows you to invite external users from a partner organization to access your Azure AD-integrated applications, such as SharePoint Online, using their own existing Azure AD credentials. This feature leverages cross-tenant trust and does not require creating new user accounts in your tenant, fulfilling the requirement exactly.
JA
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.