MS-102 Practice Question: Implement and manage Microsoft Entra identity and access
Your company uses Microsoft Entra ID and has a custom line-of-business application that supports SAML-based SSO. You need to configure the application to use Microsoft Entra ID as the identity provider. Which enterprise application configuration should you use?
⚠ Common exam trap
Many exam-takers confuse SAML-based Sign-on with OpenID Connect because both are federated protocols, but the question explicitly states the application supports SAML, not OIDC.
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
✓
SAML-based Sign-on
The application supports SAML-based SSO, so the correct enterprise application configuration is SAML-based Sign-on. This allows Microsoft Entra ID to act as the identity provider by exchanging SAML assertions with the application, enabling federated authentication.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Linked Sign-on
Why it's wrong here
Linked Sign-on is not an authentication or federation protocol; it only adds a deep link to an application that already has its own identity provider or SSO system. In this mode, Microsoft Entra ID never processes an authentication request or issues a token, so users are redirected to the app's existing login page. This option is wrong because a custom line-of-business app that needs to trust Entra ID as the identity provider requires true federated SSO, not just a portal shortcut.
- ✓
SAML-based Sign-on
Why this is correct
SAML-based Sign-on is correct because it enables true federated single sign-on between Microsoft Entra ID and a custom application that supports the SAML 2.0 standard. Entra ID acts as the identity provider, authenticates the user, and sends a digitally signed SAML assertion to the app's ACS (Assertion Consumer Service) URL, allowing the app to trust the assertion without prompting for credentials again. This is the recommended SSO method for non-gallery enterprise applications, especially older line-of-business apps that lack support for modern OAuth/OIDC protocols.
- ✗
Password-based Sign-on
Why it's wrong here
Password-based Sign-on is a credential-vaulting fallback where an administrator stores each user's username and password in Entra ID and a browser extension replays those credentials into the app's login form. It does not create a federation trust or use token-based authentication, and it requires maintaining a copy of the user's password plus a browser extension on every device. This option is incorrect because a custom app that supports SAML should be integrated via SAML-based SSO to provide a single, secure authentication flow without storing passwords in the identity provider.
- ✗
OpenID Connect-based Sign-on
Why it's wrong here
OpenID Connect is a modern authentication protocol built on OAuth 2.0 that exchanges signed JSON Web Tokens (JWTs) over HTTPS, but it is not the protocol being used when an application is presumably configured for SAML. Selecting OIDC would require the custom app to implement the OIDC authorization code-flow and return an ID token, which many legacy line-of-business applications do not support. While OIDC is a valid SSO mechanism in other contexts, this option is wrong because the correct integration method for this SAML-capable app is SAML-based Sign-on.
Go deeper
Related to this question
Learn chapter
Microsoft 365 Tenant Setup
Key term
SSO
Single Sign-On (SSO) is an authentication process that allows a user to access multiple applications or systems with one set of login credentials.
Key term
Microsoft Entra ID
Microsoft Entra ID is a cloud-based identity and access management service that lets employees sign in and access resources both inside and outside of your organization.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.