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Prepare the data →hardMultiple ChoiceObjective-mapped

Quick Answer

The correct answer is that the authentication kind 'Key' is not supported for Azure SQL Database, causing a connection failure in Power BI. This is because Azure SQL Database relies on authentication methods like SQL Server authentication (username/password), Windows authentication, or Azure Active Directory (OAuth2 or Service Principal), whereas the 'Key' authentication kind is designed for Azure Storage accounts or Cosmos DB, not for relational databases. On the Microsoft Power BI Data Analyst PL-300 exam, this scenario often appears in data source settings or gateway configuration questions, testing your understanding of supported authentication types for different Azure services. A common trap is confusing Azure SQL Database with Azure Storage, where 'Key' authentication is valid. Remember the memory tip: "SQL needs a login, not a key"—if you see 'Key' in an Azure SQL Database connection, expect failure.

PL-300 Prepare the data Practice Question

This PL-300 practice question tests your understanding of prepare the data. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.

Exhibit

Refer to the exhibit.
```json
{
  "dataSources": [
    {
      "name": "SalesDB",
      "connectionDetails": {
        "server": "sqlsrv-prod.database.windows.net",
        "database": "SalesDB",
        "authenticationKind": "Key",
        "options": {
          "CommandTimeout": 600,
          "CreateNavigationProperties": false
        }
      }
    }
  ]
}
```

You are reviewing a Power BI data source configuration in the data source settings. The exhibit shows the JSON representation of a data source. Which issue might arise from this configuration?

Question 1hardmultiple choice
Full question →

Exhibit

Refer to the exhibit.
```json
{
  "dataSources": [
    {
      "name": "SalesDB",
      "connectionDetails": {
        "server": "sqlsrv-prod.database.windows.net",
        "database": "SalesDB",
        "authenticationKind": "Key",
        "options": {
          "CommandTimeout": 600,
          "CreateNavigationProperties": false
        }
      }
    }
  ]
}
```

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

The authentication kind 'Key' is not supported for Azure SQL Database, causing connection failure.

Option D is correct because Azure SQL Database does not support the 'Key' authentication kind in Power BI data source settings. Azure SQL Database requires either Windows authentication, database credentials (Username/Password), or Azure AD-based authentication (such as OAuth2 or Service Principal). The 'Key' authentication kind is typically used for Azure Storage or Cosmos DB, not for Azure SQL Database, so this configuration will cause a connection failure.

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.

  • ✗

    The server name contains a hyphen, which is invalid in SQL Server connection strings.

    Why it's wrong here

    Hyphens are allowed in server names; the name is valid.

  • ✗

    The CommandTimeout value is too low and may cause queries to time out.

    Why it's wrong here

    600 seconds is 10 minutes, which is reasonable; the default is 600 as well.

  • ✗

    The option 'CreateNavigationProperties' is set to false, which may prevent relationships from being created.

    Why it's wrong here

    This option only affects the navigation properties in the data model, not relationships defined in Power BI.

  • ✓

    The authentication kind 'Key' is not supported for Azure SQL Database, causing connection failure.

    Why this is correct

    'Key' is not a valid authentication method for SQL Server; it should be 'UsernamePassword' or 'ServicePrincipal'.

    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 may assume 'Key' authentication is valid for any Azure service, but Microsoft restricts authentication methods per data source type, and Azure SQL Database explicitly does not support key-based authentication.

Detailed technical explanation

How to think about this question

Power BI data source settings store authentication details in JSON format, and each data source type has specific supported authentication methods. For Azure SQL Database, the supported authentication kinds include 'UsernamePassword', 'Windows', 'OAuth2', and 'ServicePrincipal', but not 'Key'. The 'Key' authentication kind is used for Azure Blob Storage, Azure Data Lake Storage, or Azure Cosmos DB, where an account key or access key is provided. When Power BI attempts to connect to Azure SQL Database with 'Key' authentication, it will fail with an error indicating that the authentication method is not supported for this data source type.

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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this PL-300 question test?

Prepare the data — This question tests Prepare the data — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: The authentication kind 'Key' is not supported for Azure SQL Database, causing connection failure. — Option D is correct because Azure SQL Database does not support the 'Key' authentication kind in Power BI data source settings. Azure SQL Database requires either Windows authentication, database credentials (Username/Password), or Azure AD-based authentication (such as OAuth2 or Service Principal). The 'Key' authentication kind is typically used for Azure Storage or Cosmos DB, not for Azure SQL Database, so this configuration will cause a connection failure.

What should I do if I get this PL-300 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.

About these practice questions

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Same concept, more angles

1 more ways this is tested on PL-300

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. You are reviewing a Power BI dataset configuration in the service. The JSON shows a data source for an Azure SQL Database. Which statement about the configuration is correct?

medium
  • ✓ A.The dataset uses key-based authentication and does not use single sign-on.
  • B.The dataset uses single sign-on with Azure AD.
  • C.The dataset is configured to use a cloud gateway for direct query.
  • D.The dataset uses cloud-only data sources and does not require a gateway.

Why A: Option A is correct because the JSON configuration for an Azure SQL Database data source in Power BI typically includes a credential setting that specifies authentication type. When the JSON shows a data source with a credential type of 'Basic' or 'Key' (and no 'SingleSignOn' property set to true), it indicates key-based authentication (e.g., using a username and password or service principal key) and explicitly disables single sign-on (SSO). This means the dataset does not leverage the user's Azure AD identity for data access.

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Last reviewed: Jun 24, 2026

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This PL-300 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 PL-300 exam.