Quick Answer
The answer is Microsoft Entra B2B collaboration. This feature is the correct choice because it enables external users from a partner organization to access your SharePoint Online site using their own Microsoft Entra ID credentials, allowing them to authenticate with their existing corporate identities rather than creating new accounts in your tenant. On the Microsoft 365 Administrator MS-102 exam, this question tests your ability to distinguish between collaboration features for external access versus customer-facing or internal scenarios; a common trap is confusing B2B with B2C, which is designed for consumer apps, or with federation, which integrates identity providers but does not grant direct resource access. Remember the memory tip: B2B is for business partners, B2C is for customers, and federation is for linking directories, not sharing sites.
This MS-102 practice question tests your understanding of implement and manage microsoft entra identity and access. 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 allow external users from a specific partner organization to access a SharePoint Online site using their own Microsoft Entra ID credentials. Which feature should you configure?
Direct Federation
Why wrong: Direct federation is for non-Entra ID IdPs.
Self-service password reset
Why wrong: SSPR is for internal users.
Microsoft Entra B2C
Why wrong: B2C is for customer identity management.
Microsoft Entra B2B collaboration
B2B allows external users to access apps with their own credentials.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra B2B collaboration
Option B is correct because B2B collaboration allows external users to sign in with their own identities. Option A is wrong because B2C is for customer-facing apps. Option C is wrong because federation is for identity provider integration, not direct access. Option D is wrong because self-service password reset is for internal users.
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.
Direct Federation
Why it's wrong here
Direct federation is for non-Entra ID IdPs.
Self-service password reset
Why it's wrong here
SSPR is for internal users.
Microsoft Entra B2C
Why it's wrong here
B2C is for customer identity management.
Microsoft Entra B2B collaboration
Why this is correct
B2B allows external users to access apps with their own credentials.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Implement and manage Microsoft Entra identity and access — study guide chapter
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FAQ
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Entra B2B collaboration — Option B is correct because B2B collaboration allows external users to sign in with their own identities. Option A is wrong because B2C is for customer-facing apps. Option C is wrong because federation is for identity provider integration, not direct access. Option D is wrong because self-service password reset is for internal users.
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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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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