- A
Microsoft Entra Connect
Why wrong: Microsoft Entra Connect is used to synchronize on-premises directories with Microsoft Entra ID, not to invite external users with their own identity providers.
- B
Microsoft Entra External Identities (B2B collaboration)
B2B collaboration allows you to invite external users to your tenant using their own identities (e.g., Google, Facebook, or any Microsoft Entra ID tenant). Combined with Conditional Access, you can enforce MFA for those guest users.
- C
Microsoft Entra Identity Protection
Why wrong: Identity Protection detects and responds to identity-based risks, but it does not provide the ability to invite external users or allow them to authenticate with their own IdPs.
- D
Microsoft Entra Privileged Identity Management (PIM)
Why wrong: PIM provides just-in-time access to privileged roles inside the organization, not for external user access or identity federation.
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 wants to allow external business partners to access a specific SharePoint Online site using their own corporate identities (such as Google or Facebook accounts). The company also needs to enforce multi-factor authentication (MFA) for these external users. Which Microsoft Entra capability should the administrator configure?
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 External Identities (B2B collaboration)
Microsoft Entra External Identities (B2B collaboration) allows you to invite external users (including those with social identities like Google or Facebook) to access your organization's resources using their own identities. It supports conditional access policies, including the enforcement of multi-factor authentication (MFA) for guest users, which meets both 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.
- ✗
Microsoft Entra Connect
Why it's wrong here
Microsoft Entra Connect is used to synchronize on-premises directories with Microsoft Entra ID, not to invite external users with their own identity providers.
- ✓
Microsoft Entra External Identities (B2B collaboration)
Why this is correct
B2B collaboration allows you to invite external users to your tenant using their own identities (e.g., Google, Facebook, or any Microsoft Entra ID tenant). Combined with Conditional Access, you can enforce MFA for those guest users.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Entra Identity Protection
Why it's wrong here
Identity Protection detects and responds to identity-based risks, but it does not provide the ability to invite external users or allow them to authenticate with their own IdPs.
- ✗
Microsoft Entra Privileged Identity Management (PIM)
Why it's wrong here
PIM provides just-in-time access to privileged roles inside the organization, not for external user access or identity federation.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Microsoft Entra Connect (which handles hybrid identity sync) with External Identities (which handles guest user access), or they assume Identity Protection or PIM can be used to grant external access, when they are security monitoring and privilege management tools respectively.
Detailed technical explanation
How to think about this question
B2B collaboration uses the SAML/WS-Federation or OIDC protocols to allow external users to authenticate with their own identity providers (e.g., Google, Facebook). The MFA enforcement is achieved by applying a Conditional Access policy that targets guest/external users and requires MFA, which is evaluated at the resource tenant level, not the home tenant. In a real-world scenario, if a guest user's home tenant does not support MFA, the resource tenant can still require MFA via its own policies, but the user must register for MFA in the resource tenant.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe the capabilities of Microsoft Entra — study guide chapter
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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: Microsoft Entra External Identities (B2B collaboration) — Microsoft Entra External Identities (B2B collaboration) allows you to invite external users (including those with social identities like Google or Facebook) to access your organization's resources using their own identities. It supports conditional access policies, including the enforcement of multi-factor authentication (MFA) for guest users, which meets both 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.
About these practice questions
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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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