- A
Create B2B collaboration invitations for each subsidiary user.
Why wrong: B2B collaboration is for external users, not for integrating a subsidiary as full employees.
- B
Configure federation between Microsoft Entra ID and Okta so that the subsidiary users authenticate with Okta.
Federation allows using existing credentials, no password sync, and CA policies can be applied.
- C
Set up password hash synchronization from Okta to Microsoft Entra ID using provisioning agents.
Why wrong: Password hash sync stores passwords in Entra ID, violating the requirement.
- D
Deploy Microsoft Identity Manager (MIM) to sync identities from Okta to on-premises AD and then to Microsoft Entra ID.
Why wrong: Requires on-premises AD and MIM, more complex and changes infrastructure.
Quick Answer
The correct answer is to configure federation between Microsoft Entra ID and Okta for the subsidiary users. This approach allows the 300 subsidiary employees to authenticate using their existing Okta credentials while ensuring no passwords are stored in Microsoft Entra ID, meeting the requirement to minimize infrastructure changes. Federation works by establishing a trust relationship where Okta handles authentication, and Microsoft Entra ID accepts the resulting security tokens, which also enables your existing Conditional Access policies to govern all access to Microsoft 365 applications. On the MS-102 exam, this scenario tests your understanding of identity federation versus B2B collaboration or synchronization methods—a common trap is choosing B2B collaboration, which creates guest accounts and complicates policy enforcement, or password hash sync, which violates the no-password-storage rule. Remember the memory tip: "Federate for full control, sync for storage, B2B for guests."
MS-102 Practice Question: Implement and manage Microsoft Entra identity and access
This MS-102 practice question tests your understanding of implement and manage microsoft entra identity and access. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 the identity administrator for a multinational company with 50,000 users. The company uses Microsoft Entra ID P2 and has recently acquired a small subsidiary with 300 users that uses a different identity provider (Okta). You need to integrate the subsidiary's identities into your Microsoft Entra tenant. Requirements: - The subsidiary's users must be able to access Microsoft 365 applications using their existing Okta credentials. - You must minimize changes to the subsidiary's existing infrastructure. - All access to Microsoft 365 must be governed by your Conditional Access policies. - Passwords must not be stored in Microsoft Entra ID.
What should you implement?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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
Configure federation between Microsoft Entra ID and Okta so that the subsidiary users authenticate with Okta.
Option A (federation with Okta) allows subsidiary users to use their existing credentials, meet password sync avoidance, and allows CA policies to be applied (though CA still applies to Entra ID side, but federation works). Option B (B2B collaboration) would create guest accounts, not ideal for full users. Option C (password hash sync) stores passwords in cloud. Option D (MIM sync) requires on-premises infrastructure and changes.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create B2B collaboration invitations for each subsidiary user.
Why it's wrong here
B2B collaboration is for external users, not for integrating a subsidiary as full employees.
- ✓
Configure federation between Microsoft Entra ID and Okta so that the subsidiary users authenticate with Okta.
Why this is correct
Federation allows using existing credentials, no password sync, and CA policies can be applied.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
Set up password hash synchronization from Okta to Microsoft Entra ID using provisioning agents.
Why it's wrong here
Password hash sync stores passwords in Entra ID, violating the requirement.
- ✗
Deploy Microsoft Identity Manager (MIM) to sync identities from Okta to on-premises AD and then to Microsoft Entra ID.
Why it's wrong here
Requires on-premises AD and MIM, more complex and changes infrastructure.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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.
What to study next
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MS-102 NAT questions on configuration and troubleshooting.
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FAQ
Questions learners often ask
What does this MS-102 question test?
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Configure federation between Microsoft Entra ID and Okta so that the subsidiary users authenticate with Okta. — Option A (federation with Okta) allows subsidiary users to use their existing credentials, meet password sync avoidance, and allows CA policies to be applied (though CA still applies to Entra ID side, but federation works). Option B (B2B collaboration) would create guest accounts, not ideal for full users. Option C (password hash sync) stores passwords in cloud. Option D (MIM sync) requires on-premises infrastructure and changes.
What should I do if I get this MS-102 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MS-102 NAT questions on configuration and troubleshooting.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Last reviewed: Jun 21, 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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