This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. 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.
A multinational corporation wants to provide a single sign-on experience for employees accessing third-party SaaS applications alongside Microsoft 365. Which Microsoft Entra ID feature should they use?
Password hash synchronization
Why wrong: Syncs passwords, not SSO.
Microsoft Entra ID as identity provider with SSO integration
Entra ID provides SSO for SaaS apps.
Multifactor authentication
Why wrong: MFA is an additional security layer.
Seamless single sign-on
Why wrong: For on-premises domain-joined devices.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra ID as identity provider with SSO integration
Microsoft Entra ID as an identity provider with SSO integration (Option B) is correct because it allows the organization to act as the central identity source for both Microsoft 365 and third-party SaaS applications. By configuring federated SSO (using SAML 2.0 or OpenID Connect), users authenticate once against Entra ID and gain seamless access to all integrated apps, eliminating the need for separate credentials.
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.
Password hash synchronization
Why it's wrong here
Syncs passwords, not SSO.
Microsoft Entra ID as identity provider with SSO integration
Why this is correct
Entra ID provides SSO for SaaS apps.
Related concept
Read the scenario before looking for a memorised answer.
Multifactor authentication
Why it's wrong here
MFA is an additional security layer.
Seamless single sign-on
Why it's wrong here
For on-premises domain-joined devices.
Common exam traps
The trap here is that candidates confuse 'Seamless SSO' (Option D) with full SSO federation, but Seamless SSO only handles the initial sign-in experience on domain-joined devices and does not extend SSO to third-party SaaS applications.
Detailed technical explanation
Under the hood, Microsoft Entra ID acts as a SAML 2.0 identity provider (IdP) or uses OpenID Connect to issue tokens for third-party SaaS apps. The organization configures each SaaS app as an enterprise application in Entra ID, defining claim mappings and attribute transformations. In a real-world scenario, a multinational might use this to give employees SSO to Salesforce, ServiceNow, and Workday, while also enforcing conditional access policies like requiring compliant devices for sensitive apps.
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
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Entra ID as identity provider with SSO integration — Microsoft Entra ID as an identity provider with SSO integration (Option B) is correct because it allows the organization to act as the central identity source for both Microsoft 365 and third-party SaaS applications. By configuring federated SSO (using SAML 2.0 or OpenID Connect), users authenticate once against Entra ID and gain seamless access to all integrated apps, eliminating the need for separate credentials.
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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