- A
Require MFA for all users
Why wrong: This would apply MFA to all users, including internal employees, which does not meet the requirement of targeting only external users.
- B
Exclude internal users by group
Why wrong: While this could work by excluding a group containing all internal users, it is not the most direct or maintainable approach. Conditional Access provides a built-in identity type target that is more efficient.
- C
Target the 'Guest or external users' identity type
Conditional Access policies allow targeting specific identity types, including 'Guest or external users'. This ensures the MFA requirement applies only to external users.
- D
Use Identity Protection's user risk policy
Why wrong: User risk policies in Identity Protection are based on risk level, not user type. They cannot specifically target only external users.
SC-900 Describe the capabilities of Microsoft Entra Practice Question
This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 company uses Microsoft Entra ID and wants to enforce multi-factor authentication (MFA) only for external guest users, while allowing internal employees to sign in without MFA. Which Conditional Access setting should be configured?
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
Target the 'Guest or external users' identity type
Option C is correct because Conditional Access allows targeting the 'Guest or external users' identity type, which enables MFA enforcement exclusively for external guest users without affecting internal employees. This setting leverages the user type attribute in Microsoft Entra ID to differentiate between internal and external identities, providing granular control over authentication requirements.
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.
- ✗
Require MFA for all users
Why it's wrong here
This would apply MFA to all users, including internal employees, which does not meet the requirement of targeting only external users.
- ✗
Exclude internal users by group
Why it's wrong here
While this could work by excluding a group containing all internal users, it is not the most direct or maintainable approach. Conditional Access provides a built-in identity type target that is more efficient.
- ✓
Target the 'Guest or external users' identity type
Why this is correct
Conditional Access policies allow targeting specific identity types, including 'Guest or external users'. This ensures the MFA requirement applies only to external users.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use Identity Protection's user risk policy
Why it's wrong here
User risk policies in Identity Protection are based on risk level, not user type. They cannot specifically target only external users.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse exclusion-based approaches (like excluding internal users by group) with direct targeting of guest identity types, leading them to choose Option B instead of the more precise and scalable Option C.
Detailed technical explanation
How to think about this question
Conditional Access policies evaluate the 'User type' attribute (member or guest) assigned to each user object in Microsoft Entra ID, which is set during invitation or provisioning. The 'Guest or external users' identity type filter uses this attribute to apply policies only to users with a userType of 'Guest', ensuring that internal members (userType 'Member') are not affected. This approach avoids the overhead of maintaining group memberships and scales automatically as guest users are added or removed.
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 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
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Target the 'Guest or external users' identity type — Option C is correct because Conditional Access allows targeting the 'Guest or external users' identity type, which enables MFA enforcement exclusively for external guest users without affecting internal employees. This setting leverages the user type attribute in Microsoft Entra ID to differentiate between internal and external identities, providing granular control over authentication requirements.
What should I do if I get this SC-900 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.
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Last reviewed: Jun 11, 2026
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.
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