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. 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.
Your organization is preparing to deploy Microsoft 365 for 5,000 users. You need to ensure that all users can authenticate using their existing on-premises Active Directory credentials while minimizing infrastructure changes. You also need to support self-service password reset (SSPR) for cloud-only users. Which authentication method should you recommend?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Password Hash Synchronization (PHS)
Password Hash Synchronization (PHS) is the correct choice because it synchronizes password hashes from on-premises Active Directory to Microsoft Entra ID, allowing users to authenticate with their existing credentials without additional infrastructure. It also enables cloud-only users to use self-service password reset (SSPR) independently, as SSPR relies on cloud-stored hashes and does not require on-premises write-back for cloud-only accounts.
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.
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Cloud-only authentication with Microsoft Entra ID
Why it's wrong here
Cloud-only authentication does not use on-premises credentials.
PHS syncs password hashes to Entra ID, enabling authentication with existing credentials and SSPR for cloud-only users.
Related concept
Read the scenario before looking for a memorised answer.
✗
Federation with AD FS
Why it's wrong here
Federation requires additional on-premises infrastructure and is not minimal.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose Pass-Through Authentication (PTA) because it validates passwords directly against on-premises AD, but they overlook that PTA requires an on-premises agent and does not support SSPR for cloud-only users without additional configuration, making PHS the simpler and more appropriate choice for minimizing changes.
Detailed technical explanation
How to think about this question
PHS synchronizes password hashes using the SHA256 hash format and syncs them every 2 minutes by default via Azure AD Connect, enabling seamless authentication even if the on-premises domain controller is unreachable. For SSPR, cloud-only users can reset passwords using the cloud-stored hash without needing password write-back, which is a separate feature for hybrid users. A subtle behavior is that PHS also provides a 'cloud authentication' fallback if the on-premises sync fails, ensuring high availability.
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: Password Hash Synchronization (PHS) — Password Hash Synchronization (PHS) is the correct choice because it synchronizes password hashes from on-premises Active Directory to Microsoft Entra ID, allowing users to authenticate with their existing credentials without additional infrastructure. It also enables cloud-only users to use self-service password reset (SSPR) independently, as SSPR relies on cloud-stored hashes and does not require on-premises write-back for cloud-only accounts.
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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