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 user needs to co-author a Word document stored in Microsoft SharePoint Online with external partners who do not have Microsoft 365 licenses. What must the administrator enable?
External sharing in SharePoint Online
Allows sharing with external users who can authenticate.
Azure AD B2B collaboration
Why wrong: B2B is for identity, but SharePoint sharing must be enabled.
Anonymous access links for documents
Why wrong: Anonymous links allow viewing but not co-authoring.
Guest access in Microsoft Teams
Why wrong: Teams guest access is for teams, not directly for SharePoint documents.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
External sharing in SharePoint Online
External sharing in SharePoint Online must be enabled at the tenant or site level to allow users to share documents with external partners who lack Microsoft 365 licenses. This setting controls the ability to send sharing invitations or generate shareable links for people outside the organization, which is the prerequisite for co-authoring with unlicensed external users.
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.
External sharing in SharePoint Online
Why this is correct
Allows sharing with external users who can authenticate.
Related concept
Read the scenario before looking for a memorised answer.
Azure AD B2B collaboration
Why it's wrong here
B2B is for identity, but SharePoint sharing must be enabled.
Anonymous access links for documents
Why it's wrong here
Anonymous links allow viewing but not co-authoring.
Guest access in Microsoft Teams
Why it's wrong here
Teams guest access is for teams, not directly for SharePoint documents.
Common exam traps
The trap here is that candidates confuse Azure AD B2B collaboration as a separate setting that must be enabled, when in fact it is automatically activated once SharePoint external sharing is turned on, making the direct answer the SharePoint-level sharing configuration.
Detailed technical explanation
When external sharing is enabled, SharePoint uses Azure AD B2B to create guest user objects in the tenant’s directory, allowing external partners to authenticate via a Microsoft account or a one-time passcode sent to their email. Co-authoring requires the document to be opened in the Word desktop app or Word for the web, and the external partner must have at least edit permissions on the document, which is granted through the sharing link or direct invitation. A common subtlety is that the 'Anyone' link (anonymous access) does not support co-authoring because it bypasses authentication, whereas 'Specific people' links require the external user to sign in and are the correct choice for this scenario.
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.
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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: External sharing in SharePoint Online — External sharing in SharePoint Online must be enabled at the tenant or site level to allow users to share documents with external partners who lack Microsoft 365 licenses. This setting controls the ability to send sharing invitations or generate shareable links for people outside the organization, which is the prerequisite for co-authoring with unlicensed external users.
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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