The correct answers are single sign-on (SSO) and multi-factor authentication (MFA), as these are the two primary benefits of Microsoft Entra ID for identity management. SSO allows users to access multiple applications with one set of credentials, reducing password fatigue and improving productivity, while MFA adds a critical layer of security by requiring a second verification factor, such as a phone code or biometric, to block unauthorized access. On the SC-900 exam, this question tests your understanding of Entra ID’s core value proposition versus other Microsoft security tools; a common trap is confusing features like password hash synchronization (which is a method for syncing passwords, not a direct benefit) or on-premises Active Directory (a separate service) with Entra ID’s cloud-native advantages. Remember that SSO and MFA are the headline benefits you’ll see in any Microsoft documentation, while security incident detection belongs to Sentinel or Defender. A quick memory tip: think of “SAM” — Single sign-on, Authentication (MFA), and Management — to recall Entra ID’s core identity benefits.
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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.
Which TWO of the following are benefits of using Microsoft Entra ID for identity management?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Single sign-on (SSO) to cloud applications
Single sign-on (SSO) and multi-factor authentication (MFA) are key benefits of Entra ID. Password hash synchronization is a feature of Entra Connect, not a direct benefit. On-premises Active Directory is a separate service. Security incident detection is more aligned with Microsoft Sentinel or Defender.
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.
✓
Single sign-on (SSO) to cloud applications
Why this is correct
Entra ID enables SSO across thousands of SaaS apps.
Related concept
Read the scenario before looking for a memorised answer.
✗
Password hash synchronization
Why it's wrong here
This is a method to sync passwords, not a direct benefit of using Entra ID itself.
Read the scenario before looking for a memorised answer.
✗
Automated security incident detection
Why it's wrong here
Incident detection is not a core identity benefit.
✗
Replacement of on-premises Active Directory
Why it's wrong here
Entra ID is not a replacement; they coexist.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Single sign-on (SSO) to cloud applications — Single sign-on (SSO) and multi-factor authentication (MFA) are key benefits of Entra ID. Password hash synchronization is a feature of Entra Connect, not a direct benefit. On-premises Active Directory is a separate service. Security incident detection is more aligned with Microsoft Sentinel or Defender.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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