SC-900 Describe the capabilities of Microsoft Entra Practice Question
A company is using Microsoft Entra ID to manage identities for a multi-tenant SaaS application. They want to allow users from partner organizations to access the application using their own corporate credentials, without needing to manage separate accounts. Which solution should they implement?
⚠ Common exam trap
It's easy for candidates to confuse Microsoft Entra B2B collaboration with Microsoft Entra B2C, mistakenly thinking both handle external users, but B2C is for customer identities (social/local accounts) while B2B is for partner identities (corporate credentials).
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
✓
Microsoft Entra B2B collaboration
Microsoft Entra B2B collaboration is the correct solution because it enables partner users to access the company's multi-tenant SaaS application using their own corporate credentials, without requiring separate accounts. B2B collaboration supports cross-tenant access by creating lightweight guest user objects in the resource tenant, which can authenticate via their home tenant's identity provider. This aligns with the requirement to allow partner organizations to use their existing credentials while avoiding account management overhead.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Microsoft Entra B2C
Why it's wrong here
Microsoft Entra B2C (Business-to-Consumer) is specifically designed for managing customer identities for consumer-facing applications, allowing users to sign up and sign in using social identities or local accounts. It is not suitable for business-to-business scenarios where partner organizations already manage their own corporate identities and need to collaborate securely with another Microsoft Entra tenant.
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Microsoft Entra federation with the partner's identity provider
Why it's wrong here
Federation requires establishing a direct trust relationship between Microsoft Entra ID and the partner's identity provider, which necessitates administrative configuration on both sides. This approach is designed for deep integration where organisations share specific user attributes or claims via protocols like SAML. In contrast, B2B collaboration allows users to use their own credentials through existing guest accounts without requiring the host organisation to manage complex cross-tenant federation settings.
- ✓
Microsoft Entra B2B collaboration
Why this is correct
Microsoft Entra B2B (Business-to-Business) collaboration is the appropriate solution for enabling partner users to access applications and resources within your organization using their existing corporate or social identities. This feature creates guest user objects in your directory, allowing external users to authenticate with their home identity provider while granting them controlled access to your Microsoft Entra ID-protected resources without requiring complex federation setup.
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Microsoft Entra provisioning service
Why it's wrong here
The Microsoft Entra provisioning service automates the lifecycle management of user identities by creating, updating, and deactivating user accounts across various cloud and on-premises applications. While essential for identity management, this service focuses on synchronizing user attributes and account states, not on enabling external users to authenticate or collaborate using their own credentials to access resources in a host tenant.
Go deeper
Related to this question
Learn chapter
Identity Concepts
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
Key term
Guest user
A guest user is a temporary or limited-access account that allows someone to use a system, network, or application without full user privileges and often without a permanent identity.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SC-900 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 SC-900 exam.