- A
Azure AD B2C (Business-to-Consumer)
Why wrong: Azure AD B2C is designed for customer-facing applications that handle consumer identities, not for business partner access using existing corporate identities.
- B
B2B collaboration
B2B collaboration allows external partners to sign in using their own work, school, or social identities, providing seamless access with minimal administrative overhead.
- C
Microsoft Entra Domain Services
Why wrong: Microsoft Entra Domain Services provides managed domain services like LDAP and Kerberos, but is not used for external identity federation.
- D
Conditional Access
Why wrong: Conditional Access is a policy engine that enforces access controls based on signals, but it does not by itself enable external users to bring their own identities.
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. 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 company wants to allow external business partners to access its internal applications using their own corporate credentials (e.g., their Microsoft Entra ID or Google account), without creating separate user accounts in the company's directory. Which Microsoft Entra ID feature should they use?
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
B2B collaboration
B2B collaboration allows the company to grant external business partners access to its internal applications using their own corporate identities (such as Microsoft Entra ID or Google accounts) without creating separate user accounts in the company's directory. It leverages federation trust and cross-tenant authentication, enabling partners to authenticate with their home organizations while accessing resources in the host tenant.
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.
- ✗
Azure AD B2C (Business-to-Consumer)
Why it's wrong here
Azure AD B2C is designed for customer-facing applications that handle consumer identities, not for business partner access using existing corporate identities.
- ✓
B2B collaboration
Why this is correct
B2B collaboration allows external partners to sign in using their own work, school, or social identities, providing seamless access with minimal administrative overhead.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Entra Domain Services
Why it's wrong here
Microsoft Entra Domain Services provides managed domain services like LDAP and Kerberos, but is not used for external identity federation.
- ✗
Conditional Access
Why it's wrong here
Conditional Access is a policy engine that enforces access controls based on signals, but it does not by itself enable external users to bring their own identities.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing B2B collaboration (for business partners with existing corporate identities) with Azure AD B2C (for customers using social or local accounts), as both involve external users but serve fundamentally different scenarios.
Detailed technical explanation
How to think about this question
B2B collaboration uses the SAML or WS-Federation protocol to establish trust with external identity providers, allowing users to authenticate at their home tenant and receive a token that is accepted by the resource tenant. Under the hood, the resource tenant creates a lightweight guest user object (UserType = Guest) that references the external identity, enabling granular permissions via Azure AD groups or direct assignment. A real-world scenario is a vendor accessing a SharePoint Online site; the vendor's IT admin configures cross-tenant access settings, and the user is redirected to their own IdP for authentication.
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: B2B collaboration — B2B collaboration allows the company to grant external business partners access to its internal applications using their own corporate identities (such as Microsoft Entra ID or Google accounts) without creating separate user accounts in the company's directory. It leverages federation trust and cross-tenant authentication, enabling partners to authenticate with their home organizations while accessing resources in the host tenant.
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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