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.
An organization uses Microsoft Entra ID. The security team wants to require multi-factor authentication (MFA) for all users accessing sensitive data from outside the corporate network. Which Microsoft Entra capability should they configure?
Conditional Access
Conditional Access policies can require MFA based on location.
B2B Collaboration
Why wrong: B2B is for external user collaboration, not MFA enforcement.
Privileged Identity Management
Why wrong: PIM is for just-in-time privileged access, not MFA.
Identity Protection
Why wrong: Identity Protection detects risk but doesn't enforce MFA directly.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Conditional Access
Conditional Access is the correct capability because it allows administrators to define policies that enforce MFA based on specific conditions, such as network location. By configuring a policy that targets all users and applies the 'Require multi-factor authentication' grant control when the location is outside the corporate network, the security team can precisely meet the requirement. This policy evaluates the user's IP address against named locations defined in Entra ID before granting access to sensitive data.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Conditional Access
Why this is correct
Conditional Access policies can require MFA based on location.
Related concept
Read the scenario before looking for a memorised answer.
B2B Collaboration
Why it's wrong here
B2B is for external user collaboration, not MFA enforcement.
Privileged Identity Management
Why it's wrong here
PIM is for just-in-time privileged access, not MFA.
Identity Protection
Why it's wrong here
Identity Protection detects risk but doesn't enforce MFA directly.
Common exam traps
The trap here is that candidates often confuse Identity Protection's risk-based MFA trigger with the ability to enforce MFA based on a static network location, but Identity Protection only responds to risk events and does not allow direct configuration of location-based conditions.
Detailed technical explanation
Conditional Access policies in Microsoft Entra ID are evaluated at the time of authentication and can combine signals such as user/group membership, device state, application, and location (via IPv4/IPv6 ranges or country codes). The 'Named locations' feature supports both IP ranges and GPS-based trusted locations, and policies can be set to 'Report-only' mode for testing before enforcement. Under the hood, the policy engine uses the OAuth 2.0 authorization framework to enforce grant controls like MFA before issuing tokens for the target resource.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
The correct answer is: Conditional Access — Conditional Access is the correct capability because it allows administrators to define policies that enforce MFA based on specific conditions, such as network location. By configuring a policy that targets all users and applies the 'Require multi-factor authentication' grant control when the location is outside the corporate network, the security team can precisely meet the requirement. This policy evaluates the user's IP address against named locations defined in Entra ID before granting access to sensitive data.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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