This MS-102 practice question tests your understanding of implement and manage microsoft entra identity and access. 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 uses Microsoft Entra ID and wants to implement a passwordless authentication strategy. Which TWO authentication methods are considered passwordless by Microsoft? (Choose two.)
Windows Hello for Business
Windows Hello uses biometrics or PIN, passwordless.
Microsoft Authenticator with notification
Why wrong: Notification is for MFA approval, not passwordless.
Password Hash Synchronization
Why wrong: Password Hash Sync is not an authentication method.
FIDO2 security keys
FIDO2 keys provide passwordless authentication.
SMS-based one-time passcode
Why wrong: SMS OTP is not passwordless; it requires a code.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Windows Hello for Business
Windows Hello for Business is a passwordless authentication method that uses biometric or PIN-based credentials tied to a user's device, leveraging asymmetric key pairs to authenticate against Microsoft Entra ID without transmitting a password. It satisfies Microsoft's definition of passwordless because the private key never leaves the device, and authentication is performed via a cryptographic challenge-response protocol.
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.
Windows Hello for Business
Why this is correct
Windows Hello uses biometrics or PIN, passwordless.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Authenticator with notification
Why it's wrong here
Notification is for MFA approval, not passwordless.
Password Hash Synchronization
Why it's wrong here
Password Hash Sync is not an authentication method.
FIDO2 security keys
Why this is correct
FIDO2 keys provide passwordless authentication.
Related concept
Read the scenario before looking for a memorised answer.
SMS-based one-time passcode
Why it's wrong here
SMS OTP is not passwordless; it requires a code.
Common exam traps
The trap here is that Microsoft Authenticator with notification is often marketed as 'passwordless' in casual contexts, but Microsoft's official documentation strictly classifies it as a multi-factor authentication method, not a passwordless one, because it still requires a password as the first factor.
Detailed technical explanation
Passwordless authentication in Microsoft Entra ID relies on FIDO2/WebAuthn standards for security keys and Windows Hello for Business, both of which use public-key cryptography where the private key is stored in hardware (TPM or secure enclave). During authentication, the server sends a nonce, the device signs it with the private key, and the server verifies the signature using the public key stored in Entra ID, eliminating any password transmission. In real-world deployments, organizations often combine Windows Hello for Business with Conditional Access policies to require device compliance, ensuring that only managed devices can authenticate passwordlessly.
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: Windows Hello for Business — Windows Hello for Business is a passwordless authentication method that uses biometric or PIN-based credentials tied to a user's device, leveraging asymmetric key pairs to authenticate against Microsoft Entra ID without transmitting a password. It satisfies Microsoft's definition of passwordless because the private key never leaves the device, and authentication is performed via a cryptographic challenge-response protocol.
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
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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