Quick Answer
The answer is SAML-based Sign-on. This is the correct enterprise application configuration because when a custom line-of-business application supports SAML-based SSO, Microsoft Entra ID must be set up to exchange SAML assertions with that application, acting as the identity provider to enable federated authentication. On the Microsoft 365 Administrator MS-102 exam, this scenario tests your understanding of how to configure SAML SSO for an enterprise application that is not a pre-integrated gallery app; a common trap is confusing this with password-based SSO or OpenID Connect, which are used for legacy apps or modern authentication respectively. To configure SAML-based SSO for a custom application, you register the app in Entra ID, choose SAML-based Sign-on, and then upload the app’s metadata or manually configure the Identifier, Reply URL, and Sign-on URL. Remember the memory tip: “SAML for custom, OIDC for modern, password for legacy” — if the app explicitly supports SAML, always pick SAML-based Sign-on.
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.
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?
Linked Sign-on
Why wrong: Linked Sign-on is for apps with existing SSO.
SAML-based Sign-on
SAML is used for SAML-based applications.
Password-based Sign-on
Why wrong: Password-based SSO uses credential vaulting.
OpenID Connect-based Sign-on
Why wrong: OpenID Connect is different from SAML.
Answer choices
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.
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.
Linked Sign-on
Why it's wrong here
Linked Sign-on is for apps with existing SSO.
SAML-based Sign-on
Why this is correct
SAML is used for SAML-based applications.
Related concept
Read the scenario before looking for a memorised answer.
Password-based Sign-on
Why it's wrong here
Password-based SSO uses credential vaulting.
OpenID Connect-based Sign-on
Why it's wrong here
OpenID Connect is different from SAML.
Common exam traps
The trap here is that candidates may confuse SAML-based Sign-on with OpenID Connect because both are federated protocols, but the question explicitly states the application supports SAML, not OIDC.
Detailed technical explanation
SAML-based Sign-on in Microsoft Entra ID relies on the SAML 2.0 protocol, where the identity provider (Entra ID) generates a signed SAML response containing an assertion about the authenticated user. The application (service provider) validates the SAML response using a pre-configured certificate and ACS URL. A subtle behavior is that Entra ID supports both IdP-initiated and SP-initiated SSO flows, but the configuration must include the correct Reply URL (Assertion Consumer Service URL) and a unique identifier (Entity ID) to avoid assertion mismatches.
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
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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: 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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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