- A
Microsoft Entra B2C
Why wrong: B2C is for customer identity and access management, designed for consumer-facing applications, not for B2B collaboration with partner organizations.
- B
Microsoft Entra B2B collaboration
Correct. B2B collaboration lets external partners use their own work or school accounts to access your resources, enabling seamless collaboration without additional credentials.
- C
Microsoft Entra Domain Services
Why wrong: Domain Services provides managed domain services like domain join and group policy, not external identity collaboration.
- D
Microsoft Entra Application Proxy
Why wrong: Application Proxy allows secure remote access to on-premises web applications, but does not handle external identities from other tenants.
Question 1,137 of 1,411
Enabling B2B Collaboration for External Partner 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 uses Microsoft Entra ID. They frequently collaborate with an external partner organization. The IT team wants to allow the partner's users to access the company's internal SharePoint site using their existing corporate credentials from their own Microsoft Entra tenant. The partner users should not have to create separate guest accounts or remember another password. Which Microsoft Entra feature should the IT team configure?
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 enables external users from a partner organization to access the company's internal SharePoint site using their own corporate credentials from their Microsoft Entra tenant. B2B collaboration creates a guest user object in the resource tenant without requiring separate guest accounts or additional passwords, leveraging cross-tenant trust and SAML/WS-Federation for authentication.
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
Why it's wrong here
B2C is for customer identity and access management, designed for consumer-facing applications, not for B2B collaboration with partner organizations.
When this WOULD be correct
A company wants to allow external customers to sign up and log in to a consumer-facing web application using their own social accounts (e.g., Google, Facebook) or email/password, without requiring an existing corporate identity. The IT team would configure Microsoft Entra B2C to manage customer identities and authentication.
- ✓
Microsoft Entra B2B collaboration
Why this is correct
Correct. B2B collaboration lets external partners use their own work or school accounts to access your resources, enabling seamless collaboration without additional credentials.
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 domain join and group policy, not external identity collaboration.
When this WOULD be correct
A company needs to lift-and-shift on-premises applications that require LDAP, Kerberos, or NTLM authentication to Azure without managing domain controllers. Entra Domain Services would be the correct feature to provide managed domain services for those legacy apps.
- ✗
Microsoft Entra Application Proxy
Why it's wrong here
Application Proxy allows secure remote access to on-premises web applications, but does not handle external identities from other tenants.
When this WOULD be correct
A company needs to provide remote access to an internal web application hosted on-premises for external users without requiring a VPN. The IT team wants to secure access with pre-authentication and conditional access policies.
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 lets external partners use their own work or school accounts to access your resources, enabling seamless collaboration without additional credentials.
✗Microsoft Entra B2CWrong answer — click to see why▾
Why this is wrong here
Microsoft Entra B2C is designed for customer-facing applications where external users sign up and manage their own identities, not for enabling existing corporate credentials from another Entra tenant to access internal resources like SharePoint.
★ When this WOULD be the correct answer
A company wants to allow external customers to sign up and log in to a consumer-facing web application using their own social accounts (e.g., Google, Facebook) or email/password, without requiring an existing corporate identity. The IT team would configure Microsoft Entra B2C to manage customer identities and authentication.
Why candidates choose this
The 'B2C' label suggests business-to-consumer, which might be confused with business-to-business (B2B). Candidates may think any external user scenario falls under B2C, overlooking that B2C is for consumer identity management, not for partner collaboration with existing corporate credentials.
✗Microsoft Entra Domain ServicesWrong answer — click to see why▾
Why this is wrong here
Microsoft Entra Domain Services provides managed domain services like domain join and group policy, not external user access to SharePoint. It does not enable cross-tenant collaboration or federated authentication for partner users.
★ When this WOULD be the correct answer
A company needs to lift-and-shift on-premises applications that require LDAP, Kerberos, or NTLM authentication to Azure without managing domain controllers. Entra Domain Services would be the correct feature to provide managed domain services for those legacy apps.
Why candidates choose this
Candidates may confuse 'Domain Services' with identity management for external access, or think it provides a broader identity solution that includes collaboration features, not realizing its focus is on legacy authentication and domain join scenarios.
✗Microsoft Entra Application ProxyWrong answer — click to see why▾
Why this is wrong here
Microsoft Entra Application Proxy is used to publish on-premises web applications externally, not to enable cross-tenant collaboration with external partners using their existing credentials.
★ When this WOULD be the correct answer
A company needs to provide remote access to an internal web application hosted on-premises for external users without requiring a VPN. The IT team wants to secure access with pre-authentication and conditional access policies.
Why candidates choose this
Candidates may confuse Application Proxy with a solution for external access, thinking it can handle partner authentication, but it is designed for publishing on-prem apps, not for B2B collaboration scenarios.
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 with B2C, thinking both are for external users, but B2C is for consumers with self-service sign-up, while B2B is for business partners using their existing corporate identities.
Detailed technical explanation
How to think about this question
Under the hood, B2B collaboration uses the SAML 2.0 or WS-Federation protocol to establish trust between the resource tenant and the partner's tenant. When a partner user accesses the SharePoint site, Entra ID issues a token based on the partner's home tenant authentication, and the resource tenant's conditional access policies can still apply. In real-world scenarios, B2B collaboration supports cross-tenant access settings that allow granular control over inbound and outbound trust, including multifactor authentication from the home tenant.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
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 enables external users from a partner organization to access the company's internal SharePoint site using their own corporate credentials from their Microsoft Entra tenant. B2B collaboration creates a guest user object in the resource tenant without requiring separate guest accounts or additional passwords, leveraging cross-tenant trust and SAML/WS-Federation for authentication.
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. Refer to the exhibit. You run this PowerShell cmdlet. What is the outcome?
easy- ✓ A.A guest user is created in Microsoft Entra ID and an invitation email is sent.
- B.The external user is added as a member user without an invitation.
- C.The external user is provisioned as a consumer account in Azure AD B2C.
- D.The external user is added as a member user and cannot be a guest.
Why A: The `New-MgInvitation` cmdlet creates a guest user in Microsoft Entra ID and sends an invitation email by default. This is the standard behavior for B2B collaboration, where the external user is assigned the 'Guest' user type and receives an email to accept the invitation and redeem their account.
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Last reviewed: Jun 11, 2026
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