The correct next step is to add a TXT record to the public DNS zone. Microsoft 365 requires this specific DNS record to confirm that you actually own and control the domain name, preventing unauthorized use of domains for services like email or user accounts. On the MS-102 exam, this question tests your understanding of the mandatory domain verification workflow, which must succeed before any other configuration—such as adding users or setting up Exchange—can proceed. A common trap is selecting “add an MX record” or “update the nameservers,” but those steps come only after ownership is proven. Remember that TXT verification is always the first DNS action, not the last. Memory tip: “TXT first, then the rest.”
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. 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 organization needs to create a custom domain in Microsoft 365. You have added the domain 'contoso.com' to the tenant. What is the next step to verify domain ownership?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Add a TXT record to the public DNS zone.
After adding a custom domain to a Microsoft 365 tenant, the next mandatory step is to prove ownership of the domain by adding a specific TXT record provided by Microsoft to the domain's public DNS zone. Microsoft queries this TXT record to verify that you control the domain before allowing you to use it for services like email or user accounts. This verification step is required by Microsoft's domain onboarding process and must succeed before any other configuration can proceed.
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.
✗
Create user accounts with the custom domain.
Why it's wrong here
User creation can happen after domain verification.
✗
Configure the email exchange (MX) record.
Why it's wrong here
MX record is for mail routing, not for domain ownership verification.
✗
Assign licenses to users with the custom domain.
Why it's wrong here
Licenses are assigned after domain verification.
✓
Add a TXT record to the public DNS zone.
Why this is correct
Domain verification typically requires adding a TXT record with a verification code.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse domain verification (TXT record) with domain configuration (MX record), mistakenly thinking that setting up email routing is the immediate next step after adding the domain.
Detailed technical explanation
How to think about this question
The verification TXT record must contain a unique value generated by Microsoft 365, typically a long alphanumeric string prefixed with 'MS='. This record is checked via DNS lookup, and the verification process uses the Domain Name System (DNS) protocol as defined in RFC 1035. In a real-world scenario, if you have multiple DNS providers or a split-brain DNS, you must ensure the TXT record is added to the public authoritative DNS zone that Microsoft queries, not an internal DNS zone.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
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: Add a TXT record to the public DNS zone. — After adding a custom domain to a Microsoft 365 tenant, the next mandatory step is to prove ownership of the domain by adding a specific TXT record provided by Microsoft to the domain's public DNS zone. Microsoft queries this TXT record to verify that you control the domain before allowing you to use it for services like email or user accounts. This verification step is required by Microsoft's domain onboarding process and must succeed before any other configuration can proceed.
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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