- A
Microsoft Entra B2B collaboration
Correct. B2B collaboration enables external partners to use their own corporate identities to access apps in your tenant, with full lifecycle management capabilities.
- B
Microsoft Entra B2C
Why wrong: B2C is designed for customer-facing applications where users can sign in with social or local accounts, not for business partner access using existing Azure AD credentials.
- C
Identity Protection
Why wrong: Identity Protection detects and responds to identity-based risks; it does not provide external user access or guest lifecycle management.
- D
Privileged Identity Management (PIM)
Why wrong: PIM manages just-in-time privileged roles for internal users, not the onboarding or lifecycle of external partner users.
Question 495 of 1,411
Microsoft Entra B2B Collaboration for External Partners with Lifecycle Management
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 uses Microsoft Entra ID and wants to provide external business partners with access to a specific internal application. The partners already use Microsoft Entra ID in their own organization. The company wants the partners to use their existing corporate credentials to sign in, without creating new user accounts in the company's tenant. The company also wants to manage the access lifecycle, including automatically removing access after a project ends. Which Microsoft Entra ID feature should they use?
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 B2B collaboration
Microsoft Entra B2B collaboration is the correct feature because it allows external users from partner organizations who already have their own Microsoft Entra ID accounts to sign in using their existing corporate credentials, without requiring new user accounts in the company's tenant. It also supports access lifecycle management through features like entitlement management and access reviews, enabling automatic removal of access when a project ends.
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 B2B collaboration
Why this is correct
Correct. B2B collaboration enables external partners to use their own corporate identities to access apps in your tenant, with full lifecycle management capabilities.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Entra B2C
Why it's wrong here
B2C is designed for customer-facing applications where users can sign in with social or local accounts, not for business partner access using existing Azure AD credentials.
When this WOULD be correct
A company wants to allow external customers to sign up for an application using their own email (e.g., Gmail, Facebook) or create local accounts, and the company needs to customize the sign-up and sign-in experience. In that scenario, Microsoft Entra B2C would be the correct feature.
- ✗
Identity Protection
Why it's wrong here
Identity Protection detects and responds to identity-based risks; it does not provide external user access or guest lifecycle management.
When this WOULD be correct
A company wants to automatically detect and block risky sign-in attempts for all users, including external guests, and enforce conditional access policies based on risk level. Identity Protection would be the correct feature to use.
- ✗
Privileged Identity Management (PIM)
Why it's wrong here
PIM manages just-in-time privileged roles for internal users, not the onboarding or lifecycle of external partner users.
When this WOULD be correct
A company needs to provide time-limited, elevated access to an internal admin role for a contractor who is an existing user in the company's tenant, with approval workflows and automatic removal of access after a project ends.
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.
✓Microsoft Entra B2B collaborationCorrect answer▾
Why this is correct
Correct. B2B collaboration enables external partners to use their own corporate identities to access apps in your tenant, with full lifecycle management capabilities.
✗Microsoft Entra B2CWrong answer — click to see why▾
Why this is wrong here
Microsoft Entra B2C is designed for customer-facing applications where users sign up with social or local identities, not for business partners using their own corporate credentials. The question requires partners to use existing Entra ID credentials, which is B2B collaboration, not B2C.
★ When this WOULD be the correct answer
A company wants to allow external customers to sign up for an application using their own email (e.g., Gmail, Facebook) or create local accounts, and the company needs to customize the sign-up and sign-in experience. In that scenario, Microsoft Entra B2C would be the correct feature.
Why candidates choose this
Candidates may confuse 'B2B' and 'B2C' because both involve external users, and the 'C' in B2C might be misinterpreted as 'collaboration' rather than 'customer'. They might also think B2C can handle any external identity, including partners.
✗Identity ProtectionWrong answer — click to see why▾
Why this is wrong here
Identity Protection is a tool for detecting and responding to identity-based risks, such as compromised credentials or suspicious sign-ins. It does not provide external user access management or lifecycle automation for business partners.
★ When this WOULD be the correct answer
A company wants to automatically detect and block risky sign-in attempts for all users, including external guests, and enforce conditional access policies based on risk level. Identity Protection would be the correct feature to use.
Why candidates choose this
Candidates may confuse Identity Protection's risk-based access controls with the ability to manage external access, assuming it can handle partner authentication and lifecycle, which it cannot.
✗Privileged Identity Management (PIM)Wrong answer — click to see why▾
Why this is wrong here
Privileged Identity Management (PIM) manages just-in-time access and role activation for privileged roles within an organization, not external partner access or lifecycle management for external users.
★ When this WOULD be the correct answer
A company needs to provide time-limited, elevated access to an internal admin role for a contractor who is an existing user in the company's tenant, with approval workflows and automatic removal of access after a project ends.
Why candidates choose this
Candidates may confuse PIM's access lifecycle management (time-bound roles, automatic removal) with the external user lifecycle management required in the question, overlooking that PIM is for internal privileged roles, not external identities.
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 B2B collaboration (for business partners with existing corporate identities) with B2C (for customers using social or local accounts), leading them to select B2C when the scenario clearly describes partner organizations using their own corporate credentials.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Entra B2B collaboration uses the SAML 2.0 or WS-Federation protocol to federate with the partner's Microsoft Entra ID tenant, enabling cross-tenant trust without duplicating identities. A real-world scenario where this matters is when a company needs to grant time-limited access to a project management application; by using B2B collaboration with entitlement management, access can be automatically revoked when the project ends via access reviews or expiration 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.
What to study next
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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: Microsoft Entra B2B collaboration — Microsoft Entra B2B collaboration is the correct feature because it allows external users from partner organizations who already have their own Microsoft Entra ID accounts to sign in using their existing corporate credentials, without requiring new user accounts in the company's tenant. It also supports access lifecycle management through features like entitlement management and access reviews, enabling automatic removal of access when a project ends.
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
2 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. Which two scenarios are examples of using Microsoft Entra business-to-business (B2B) collaboration? (Choose two.)
easy- ✓ A.A user from a partner organization is invited to access a SharePoint Online site.
- B.An employee uses their Microsoft Entra ID to sign in to a third-party SaaS application.
- C.Two internal departments share resources within the same tenant.
- ✓ D.A vendor employee uses their own work email to access a Power BI dashboard shared by your company.
- E.Customers use their Facebook accounts to sign in to a company's web application.
Why A: Option A is correct because Microsoft Entra B2B collaboration allows you to invite external users from partner organizations to access your company's resources, such as a SharePoint Online site. The invited user authenticates using their own home tenant credentials, and a B2B guest user object is created in your directory to represent them.
Variation 2. Which TWO capabilities are provided by Microsoft Entra External ID? (Choose two.)
easy- ✓ A.Support for social identity providers like Google
- B.Mobile device management
- ✓ C.Collaboration with external users from partner organizations
- D.On-premises server monitoring
- E.Identity risk detection
Why A: Options A and C are correct. Microsoft Entra External ID enables collaboration with external users from partner organizations (option C) and supports social identity providers like Google, Facebook, and Microsoft accounts (option A). Option B is incorrect because mobile device management is handled by Microsoft Intune, not Entra External ID. Option D is incorrect because on-premises server monitoring is not a capability of Entra External ID; it is unrelated to identity and access management. Option E is incorrect because identity risk detection is part of Microsoft Entra Identity Protection, not External ID.
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Last reviewed: Jun 11, 2026
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