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 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?
Why wrong: B2C is designed for customer-facing applications with self-service sign-up and social identity providers, not for managing partner access to internal resources.
B
Microsoft Entra External ID (B2B Collaboration)
B2B Collaboration allows external partners to use their own identities to access internal apps and resources, with management in your directory.
C
Microsoft Entra Domain Services
Why wrong: Domain Services provides managed domain services like LDAP and Kerberos for legacy applications, not partner access management.
D
Microsoft Entra Identity Protection
Why wrong: Identity Protection detects and responds to identity risks but does not facilitate external user access or management.
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.
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 B2C (Business to Customer)
Why it's wrong here
B2C is designed for customer-facing applications with self-service sign-up and social identity providers, not for managing partner access to internal resources.
✓
Microsoft Entra External ID (B2B Collaboration)
Why this is correct
B2B Collaboration allows external partners to use their own identities to access internal apps and resources, with management in your directory.
Related concept
Read the scenario before looking for a memorised answer.
✗
Microsoft Entra Domain Services
Why it's wrong here
Domain Services provides managed domain services like LDAP and Kerberos for legacy applications, not partner access management.
✗
Microsoft Entra Identity Protection
Why it's wrong here
Identity Protection detects and responds to identity risks but does not facilitate external user access or management.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that 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.
Detailed technical explanation
How to think about this question
Under the hood, B2B Collaboration uses the SAML, WS-Federation, or OIDC protocols to federate with external identity providers, and the invited users are represented as guest user objects (UserType = Guest) in the tenant's Microsoft Entra directory. This allows the company to apply granular conditional access policies, such as requiring multi-factor authentication or device compliance, to these guest users when they access SharePoint Online or Teams. A real-world scenario is a manufacturing company inviting suppliers from Google Workspace to collaborate on a Teams channel, where the suppliers authenticate with their Google accounts but are governed by the host company's access policies.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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 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.
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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