SC-900 Describe the capabilities of Microsoft Entra Practice Question
A company needs to allow external business partners to securely access internal SharePoint Online sites and Teams channels. The partners use various identity providers, including Microsoft Entra ID and Google. The company wants to manage these external users in their directory and assign access policies. Which Microsoft Entra ID capability should they use?
⚠ Common exam trap
Candidates often confuse Microsoft Entra B2C (for customers) with B2B Collaboration (for business partners), leading them to select B2C because both involve external users, but B2C is for consumer-facing apps, not for granting access to internal resources like SharePoint and Teams.
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 ID (B2B Collaboration)
Microsoft Entra External ID (B2B Collaboration) is the correct capability because it allows the company to invite external business partners (B2B users) from any identity provider, including Microsoft Entra ID and Google, into their own Microsoft Entra directory. This enables the company to manage these external users in their directory, assign conditional access policies, and grant them secure access to internal SharePoint Online sites and Teams channels without requiring a separate application or customer-facing identity system.
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 B2C (Business to Customer)
Why it's wrong here
Microsoft Entra B2C is designed for managing customer identities and access for consumer-facing applications, enabling self-service sign-up and sign-in with social or local accounts. It creates a separate directory for millions of external consumers, distinct from an organization's internal corporate directory. Therefore, it is not the appropriate solution for integrating trusted business partners to securely access internal organizational resources.
- ✓
Microsoft Entra External ID (B2B Collaboration)
Why this is correct
Microsoft Entra External ID (B2B Collaboration) is the correct solution, specifically designed for securely collaborating with external business partners. It allows guest users from partner organizations to use their existing corporate or social identities to access specific applications and resources within your Microsoft Entra tenant. This integrates partners directly into your organization's access management framework, providing controlled and managed access to internal systems.
- ✗
Microsoft Entra Domain Services
Why it's wrong here
Microsoft Entra Domain Services provides managed domain services, such as LDAP, Kerberos, and NTLM authentication, primarily for cloud-based virtual machines and legacy applications that require traditional domain controller functionality. It extends a managed domain to the cloud for infrastructure-level authentication. However, it does not facilitate or manage external user access to internal resources or provide identity federation capabilities for business partners.
- ✗
Microsoft Entra Identity Protection
Why it's wrong here
Microsoft Entra Identity Protection is a security feature focused on detecting and remediating identity-based risks, such as compromised credentials, suspicious sign-ins, and risky users. It leverages machine learning to identify anomalies and can enforce conditional access policies in response to these risks. While crucial for securing all identities, it is a risk detection and response tool, not a mechanism for provisioning or managing external partner access to internal systems.
Go deeper
Related to this question
Learn chapter
Identity Concepts
Key term
Collaboration
Collaboration in Microsoft 365 refers to the integrated tools and services that enable people to work together in real time, share information, and coordinate tasks from anywhere.
Key term
Conditional access
Conditional access is a security framework that evaluates signals like user location, device health, and risk level to grant or block access to resources in real time.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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