Quick Answer
The correct answer is to enable External access and add the other organization’s domain to the allowed list in the Teams admin center. This setting, often called federation, uses the Session Initiation Protocol (SIP) to establish trust between separate Microsoft 365 tenants, allowing users from different domains to communicate via chat, calls, and presence. On the MS-102 exam, this topic tests your understanding of how to manage cross-tenant collaboration, and a common trap is confusing External access with Guest access—remember that federation is for entire domains, not individual users. The exam may present a scenario where you need to allow communication with a partner company using a different domain, and the key is to navigate to Teams admin center > External access, then toggle on “Users can communicate with other Teams users” and add the specific domain. A helpful memory tip: “Federation is for domains, Guest access is for people.”
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.
You need to configure Microsoft Teams to allow external access for federation with another organization. The other organization uses a different domain. Which setting must you enable in the Teams admin center?
Network roaming policy for the external users.
Why wrong: Incorrect: This is for location-based routing, not federation.
Guest access in Teams settings.
Why wrong: Incorrect: Guest access is different from federation.
Emergency calling policies.
Why wrong: Incorrect: This is not related to federation.
External access with the domain of the other organization.
Correct: You enable federation by adding the external domain to the allowed list.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
External access with the domain of the other organization.
Option D is correct because to enable federation with another organization that uses a different domain, you must configure External access (also known as federation) in the Teams admin center. Specifically, you need to add the external domain to the allowed domain list under Teams > External access. This allows users in your tenant to communicate with users in the other organization via Teams, using the Session Initiation Protocol (SIP) federation protocol.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Network roaming policy for the external users.
Why it's wrong here
Incorrect: This is for location-based routing, not federation.
Guest access in Teams settings.
Why it's wrong here
Incorrect: Guest access is different from federation.
Emergency calling policies.
Why it's wrong here
Incorrect: This is not related to federation.
External access with the domain of the other organization.
Why this is correct
Correct: You enable federation by adding the external domain to the allowed list.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse Guest access (Azure AD B2B) with External access (federation), leading them to select Option B, but Guest access is for individual external users, not for domain-level federation with another organization.
Detailed technical explanation
Under the hood, Teams federation uses the Microsoft 365 tenant-to-tenant trust established via DNS SRV records and SIP domains. When you add an external domain in the Teams admin center, your tenant's SIP proxy will route messages to the external tenant's SIP proxy, enabling presence, chat, and calling across tenants. A subtle behavior: even with federation enabled, certain features like file sharing or meeting scheduling may require additional configuration (e.g., Azure AD B2B collaboration).
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
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..
The correct answer is: External access with the domain of the other organization. — Option D is correct because to enable federation with another organization that uses a different domain, you must configure External access (also known as federation) in the Teams admin center. Specifically, you need to add the external domain to the allowed domain list under Teams > External access. This allows users in your tenant to communicate with users in the other organization via Teams, using the Session Initiation Protocol (SIP) federation protocol.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 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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