- A
Identity Protection
Why wrong: Identity Protection detects risks but does not directly enforce MFA based on network location; it provides risk signals for Conditional Access.
- B
Conditional Access
Conditional Access allows administrators to define policies that grant or block access based on conditions such as network location, requiring MFA when outside the corporate network.
- C
Privileged Identity Management (PIM)
Why wrong: PIM manages time-based and approval-based role activation, not MFA enforcement based on location.
- D
Self-Service Password Reset (SSPR)
Why wrong: SSPR allows users to reset their passwords without administrator intervention, not location-based MFA requirements.
Question 553 of 1,411
Location-Based MFA with Conditional Access
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.
A company wants to require multi-factor authentication (MFA) for all users accessing a financial application, but only when they sign in from outside the corporate network. Which Microsoft Entra ID feature should be used?
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
✓
Conditional Access
Conditional Access is the correct choice because it allows administrators to define policies that enforce multi-factor authentication (MFA) based on specific conditions, such as network location. In this scenario, a Conditional Access policy can be configured to require MFA only when users access the financial application from outside the corporate network, using the 'Locations' condition to distinguish trusted IP ranges from external sign-ins. This granular control directly addresses the requirement without affecting internal access.
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.
- ✗
Identity Protection
Why it's wrong here
Identity Protection detects risks but does not directly enforce MFA based on network location; it provides risk signals for Conditional Access.
When this WOULD be correct
Identity Protection would be correct if the question asked: 'Which Microsoft Entra ID feature should be used to detect and automatically respond to risky sign-in behaviors, such as sign-ins from anonymous IP addresses or leaked credentials?'
- ✓
Conditional Access
Why this is correct
Conditional Access allows administrators to define policies that grant or block access based on conditions such as network location, requiring MFA when outside the corporate network.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Privileged Identity Management (PIM)
Why it's wrong here
PIM manages time-based and approval-based role activation, not MFA enforcement based on location.
- ✗
Self-Service Password Reset (SSPR)
Why it's wrong here
SSPR allows users to reset their passwords without administrator intervention, not location-based MFA requirements.
When this WOULD be correct
A company wants to allow users to reset their own passwords securely by verifying their identity through a second factor, such as a phone call or text message. Which Microsoft Entra ID feature should be used?
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The SC-900 exam frequently reuses these exact scenarios with slightly different constraints.
✓Conditional AccessCorrect answer▾
Why this is correct
Conditional Access allows administrators to define policies that grant or block access based on conditions such as network location, requiring MFA when outside the corporate network.
✗Identity ProtectionWrong answer — click to see why▾
Why this is wrong here
Identity Protection is a tool for detecting and responding to identity risks, but it does not enforce access controls like requiring MFA based on network location. Conditional Access is the feature that applies policies such as location-based MFA requirements.
★ When this WOULD be the correct answer
Identity Protection would be correct if the question asked: 'Which Microsoft Entra ID feature should be used to detect and automatically respond to risky sign-in behaviors, such as sign-ins from anonymous IP addresses or leaked credentials?'
Why candidates choose this
Candidates may confuse Identity Protection's risk detection capabilities with Conditional Access's policy enforcement, thinking that risk-based policies automatically include location-based MFA requirements.
✗Privileged Identity Management (PIM)Wrong answer — click to see why▾
Why this is wrong here
Privileged Identity Management (PIM) manages, controls, and monitors access to privileged roles, not location-based MFA enforcement. It does not evaluate network location to trigger MFA.
★ When this WOULD be the correct answer
A company needs to provide just-in-time privileged access to Azure AD roles and require approval or MFA for role activation. In that scenario, PIM is the correct feature to use.
Why candidates choose this
Candidates may confuse PIM's ability to require MFA for role activation with Conditional Access's ability to require MFA based on location, because both involve MFA but serve different purposes.
✗Self-Service Password Reset (SSPR)Wrong answer — click to see why▾
Why this is wrong here
Self-Service Password Reset (SSPR) allows users to reset their own passwords without administrator intervention, but it does not enforce multi-factor authentication based on network location. The requirement to require MFA only when signing in from outside the corporate network is a conditional access policy, which is handled by Conditional Access, not SSPR.
★ When this WOULD be the correct answer
A company wants to allow users to reset their own passwords securely by verifying their identity through a second factor, such as a phone call or text message. Which Microsoft Entra ID feature should be used?
Why candidates choose this
Candidates may confuse SSPR with MFA because SSPR can require MFA during the password reset process, leading them to think it can enforce MFA for sign-ins.
Analysis generated from the official SC-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Identity Protection's risk-based MFA triggers with Conditional Access's location-based MFA enforcement, assuming Identity Protection alone can enforce MFA based on network location, whereas it only provides risk signals that must be consumed by a Conditional Access policy.
Detailed technical explanation
How to think about this question
Under the hood, Conditional Access policies evaluate signals such as user/group membership, IP address ranges (via named locations), device compliance, and application IDs before granting access. The 'Locations' condition uses IPv4/IPv6 CIDR ranges or country/region mappings to determine if a sign-in originates from a trusted corporate network; if not, the policy can require MFA via the 'Grant' control. In a real-world scenario, an organization might define a named location for its office IP range (e.g., 203.0.113.0/24) and create a policy targeting the financial app's app ID, ensuring external users must pass MFA while internal users experience seamless access.
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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Describe the capabilities of Microsoft Entra — study guide chapter
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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: Conditional Access — Conditional Access is the correct choice because it allows administrators to define policies that enforce multi-factor authentication (MFA) based on specific conditions, such as network location. In this scenario, a Conditional Access policy can be configured to require MFA only when users access the financial application from outside the corporate network, using the 'Locations' condition to distinguish trusted IP ranges from external sign-ins. This granular control directly addresses the requirement without affecting internal access.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more ways this is tested on SC-900
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization wants to enforce MFA for all users accessing the Azure portal. However, users accessing from the corporate office network should not be prompted for MFA. Which Conditional Access assignment should you configure?
easy- A.Include all users, include trusted locations.
- B.Include all trusted locations.
- C.Include Azure portal app, exclude trusted locations.
- ✓ D.Include all locations, exclude trusted locations.
Why D: Option D is correct because Conditional Access policies evaluate assignments based on conditions such as user, app, and location. To enforce MFA for all users accessing the Azure portal while excluding the corporate office network, you must include all users and the Azure portal app, then exclude trusted locations (the corporate network). This ensures MFA is required only when access originates from outside the trusted corporate network.
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Last reviewed: Jun 11, 2026
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