MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
Which TWO actions are required to configure a custom domain for your Microsoft 365 tenant?
⚠ Common exam trap
Many candidates confuse optional service-specific DNS records (like SPF, MX, or autodiscover CNAME) with the mandatory domain ownership verification record, leading them to select A, B, or C instead of the correct verification TXT record option.
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
✓
Add the domain name in the Microsoft 365 admin center.
Adding the custom domain name in the Microsoft 365 admin center is the first step to register the domain with the tenant. Option E is correct because Microsoft requires you to prove ownership of the domain by adding a specific TXT record (or sometimes a CNAME or MX record) to the public DNS zone; this verification step ensures only the domain owner can configure it for the tenant.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Add an SPF TXT record in the public DNS zone.
Why it's wrong here
Adding an SPF TXT record in the public DNS zone is not a verification step because SPF is specifically an email authentication mechanism that lists hosts authorized to send mail for your domain. Microsoft 365 does not parse SPF for domain ownership; instead, it requires a unique TXT record value in the Microsoft 365 admin center domain verification wizard. Therefore, while SPF is often desirable for mail delivery, it does not satisfy the custom domain configuration prerequisite.
- ✗
Add a CNAME record for autodiscover.
Why it's wrong here
A CNAME record for autodiscover is only needed after your domain is already verified and you are connecting Exchange Online, because it lets Outlook discover the EAS and EWS endpoints. It is not a domain ownership proof: Microsoft's verification process either offers a unique TXT record or a Microsoft-issued CNAME for a specific label, never the autodiscover CNAME. Adding this record before verification is irrelevant to registering the domain in the admin center.
- ✗
Add an MX record in the public DNS zone.
Why it's wrong here
The MX record's role is to route incoming email to your mail host, so it may be required for mailflow if Exchange Online is handling mail, but it never proves that you own the domain. Microsoft 365 requires a TXT verification record or alternate CNAME method before it lets you configure services, and the MX record can be set only after that verification. Thus, the MX record is not one of the two required actions to configure a custom domain.
- ✓
Add the domain name in the Microsoft 365 admin center.
Why this is correct
The first required action is to register the domain with your tenant by navigating to Settings > Domains > Add domain and typing the fully qualified domain name, such as contoso.com. This initiates the Microsoft 365 domain provisioning workflow, enabling you to confirm that you are not using a domain already claimed by another tenant and to receive the verification token. Without this admin-center entry, no verification or DNS setup can proceed.
- ✓
Verify domain ownership by adding a TXT record provided by Microsoft.
Why this is correct
After the domain is added, Microsoft 365 displays a unique TXT record, typically 'MS=msXXXXXXXX', that must be created in your public DNS zone to prove administrative control. You then return to the admin center and select Verify, causing Microsoft to query the TXT record and validate ownership. This TXT check is the second mandatory action and is separate from the domain-name entry, because it authenticates that you own the namespace before any service records are configured.
Go deeper
Related to this question
Learn chapter
Azure Active Directory Domain Services (AADDS)
Key term
Custom domain
A custom domain is a personalized internet address (like contoso.com) that you can use with cloud services instead of the default domain provided by the service provider.
Key term
Microsoft 365 tenant
A Microsoft 365 tenant is a dedicated, isolated instance of Microsoft 365 services created for an organization when they sign up for a subscription.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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