The answer is to enable pass-through authentication (PTA) with Microsoft Entra Connect. This is correct because PTA validates user passwords directly against on-premises Active Directory through a lightweight agent, ensuring that no password hash is ever stored or exposed to Microsoft Entra ID, which directly satisfies the requirement to avoid password hash sync. On the MS-102 exam, this scenario tests your ability to distinguish between hybrid identity options when the core constraint is data residency or security policy against cloud-stored hashes; a common trap is choosing AD FS, which also avoids hash sync but adds unnecessary infrastructure complexity for a single-domain subsidiary. Remember the key distinction: PTA is the agent-based, simpler alternative to AD FS when the goal is purely to avoid hash exposure without requiring federation. Memory tip: “PTA Passes Through, AD FS Feds—if no hash, PTA’s your path.”
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.
You are deploying Microsoft 365 for a new subsidiary. The subsidiary has a single domain subsidiary.com. You need to configure a hybrid identity solution with Microsoft Entra ID. The on-premises Active Directory has a single domain and all user accounts are synchronized using Microsoft Entra Connect. You want to ensure that users can sign in to Microsoft 365 using their on-premises credentials without exposing the password hash to Microsoft. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable pass-through authentication (PTA) with Microsoft Entra Connect.
Option D is correct because pass-through authentication (PTA) allows users to sign in to Microsoft 365 using their on-premises credentials without storing password hashes in Microsoft Entra ID. PTA validates passwords directly against on-premises Active Directory via an agent, ensuring no password hash is exposed to Microsoft, which meets the stated requirement.
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.
✗
Configure password hash synchronization.
Why it's wrong here
Password hash sync stores password hashes in the cloud.
✗
Create cloud-only user accounts and disable on-premises authentication.
Why it's wrong here
This does not meet the requirement to use on-premises credentials.
✗
Implement Active Directory Federation Services (AD FS) with Microsoft Entra ID.
Why it's wrong here
Federation still uses password hashes for backup authentication.
✓
Enable pass-through authentication (PTA) with Microsoft Entra Connect.
Why this is correct
PTA validates passwords on-premises without storing hashes in the cloud.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse pass-through authentication with password hash synchronization, assuming both expose credentials, but PTA avoids any hash storage while still enabling cloud authentication.
Detailed technical explanation
How to think about this question
Pass-through authentication works by deploying a lightweight agent on an on-premises server that listens for authentication requests from Microsoft Entra ID. When a user attempts to sign in, Entra ID sends the username and password to the agent, which validates them against Active Directory using standard Kerberos or NTLM protocols and returns a success or failure response. This process ensures that passwords are never stored in the cloud and that authentication remains entirely on-premises, while still supporting seamless single sign-on for Microsoft 365 services.
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 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-102 question in full detail.
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: Enable pass-through authentication (PTA) with Microsoft Entra Connect. — Option D is correct because pass-through authentication (PTA) allows users to sign in to Microsoft 365 using their on-premises credentials without storing password hashes in Microsoft Entra ID. PTA validates passwords directly against on-premises Active Directory via an agent, ensuring no password hash is exposed to Microsoft, which meets the stated requirement.
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.
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Question Discussion
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