The answer is authentication, authorization, and federation. These three are the foundational pillars of identity management in Microsoft Entra ID because authentication verifies who a user is, authorization determines what they can access, and federation enables trust with external identity providers for seamless cross-domain access. On the SC-900 exam, this question tests your ability to distinguish core identity concepts from features or general security principles—a common trap is confusing single sign-on (a feature that relies on these concepts) with a core concept itself, or mistaking least privilege (a broader security model) for an identity-specific term. Remember the mnemonic “AAF” (Authentication, Authorization, Federation) to lock in the trio, and keep in mind that encryption relates to data protection, not identity management.
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 THREE of the following are key concepts of identity management in Microsoft Entra ID?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Federation
Authentication verifies identity, authorization grants access, and federation allows using external identity providers. Single sign-on is a feature, not a core concept per se, but often listed. Least privilege is a security principle but not an identity management concept exclusive to Entra ID. Encryption is unrelated.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Encryption
Why it's wrong here
Encryption is a data protection mechanism, not an identity management concept.
✓
Federation
Why this is correct
Federation allows users to authenticate using external identity providers.
Related concept
Authentication checks who the user is.
✗
Least privilege
Why it's wrong here
Least privilege is a security principle but not a core identity management concept in this context.
✓
Authorization
Why this is correct
Authorization determines what resources a user can access.
Related concept
Authentication checks who the user is.
✓
Authentication
Why this is correct
Authentication is the process of verifying identity.
Related concept
Authentication checks who the user is.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
Authentication checks who the user is.
Authorization controls what the user is allowed to do after login.
Privilege levels affect access to EXEC and configuration commands.
AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
→Do not assume successful login means full administrative access.
→Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
→Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
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.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-900 questions on access control and AAA configuration.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Federation — Authentication verifies identity, authorization grants access, and federation allows using external identity providers. Single sign-on is a feature, not a core concept per se, but often listed. Least privilege is a security principle but not an identity management concept exclusive to Entra ID. Encryption is unrelated.
What should I do if I get this SC-900 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-900 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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