- A
Microsoft Entra ID Protection
Why wrong: Microsoft Entra ID Protection detects risks like leaked credentials and anomalous sign-ins, but does not provide passwordless sign-in methods.
- B
Conditional Access
Why wrong: Conditional Access is a policy engine that enforces access controls based on signals, but it does not itself provide passwordless authentication mechanisms.
- C
Passwordless authentication
Passwordless authentication in Microsoft Entra ID includes Windows Hello for Business, Microsoft Authenticator, and FIDO2 security keys, allowing users to sign in securely without a password.
- D
Self-Service Password Reset (SSPR)
Why wrong: SSPR allows users to reset their own passwords when forgotten, but it still requires a password to be set; it does not enable passwordless sign-in.
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.
An organization decides to eliminate passwords for their employees. They deploy Windows Hello for Business on company-issued laptops, allowing users to sign in with a PIN or a biometric gesture (e.g., fingerprint). The IT team also enables Microsoft Authenticator and FIDO2 security keys as alternative sign-in methods. Which Microsoft Entra ID capability are they leveraging?
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
Passwordless authentication
The organization is implementing passwordless authentication by removing passwords and using Windows Hello for Business (PIN/biometrics), Microsoft Authenticator, and FIDO2 security keys. These methods replace the password with a cryptographic key pair bound to the device or user, satisfying the definition of passwordless authentication in Microsoft Entra ID.
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 ID Protection
Why it's wrong here
Microsoft Entra ID Protection detects risks like leaked credentials and anomalous sign-ins, but does not provide passwordless sign-in methods.
- ✗
Conditional Access
Why it's wrong here
Conditional Access is a policy engine that enforces access controls based on signals, but it does not itself provide passwordless authentication mechanisms.
- ✓
Passwordless authentication
Why this is correct
Passwordless authentication in Microsoft Entra ID includes Windows Hello for Business, Microsoft Authenticator, and FIDO2 security keys, allowing users to sign in securely without a password.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Self-Service Password Reset (SSPR)
Why it's wrong here
SSPR allows users to reset their own passwords when forgotten, but it still requires a password to be set; it does not enable passwordless sign-in.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the authentication method (passwordless) with the security policies that protect it (Conditional Access) or the risk detection that monitors it (Identity Protection), leading them to select a wrong answer that sounds related but is not the core capability being demonstrated.
Detailed technical explanation
How to think about this question
Passwordless authentication in Microsoft Entra ID relies on FIDO2/WebAuthn and key-based authentication (e.g., Windows Hello for Business uses TPM-backed asymmetric keys). The user's private key never leaves the device, and the public key is registered in Entra ID, enabling sign-in without a shared secret. In a real-world scenario, if a laptop is lost, the FIDO2 key or biometric PIN remains secure because the private key cannot be extracted from the TPM.
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: Passwordless authentication — The organization is implementing passwordless authentication by removing passwords and using Windows Hello for Business (PIN/biometrics), Microsoft Authenticator, and FIDO2 security keys. These methods replace the password with a cryptographic key pair bound to the device or user, satisfying the definition of passwordless authentication in Microsoft Entra ID.
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
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