Question 1,273 of 1,250
SC-900 Describe the capabilities of Microsoft Entra Practice Question
A company wants to provide secure external access to a partner application without creating user accounts manually. They need to allow partners to authenticate using their existing corporate identities (e.g., from other organizations) and configure policies for access. Which Microsoft Entra feature should they use?
⚠ Common exam trap
Candidates often confuse B2B collaboration (External ID) with B2C (External Identities for customer-facing apps) or think that Privileged Identity Management is needed for external access, but the question specifically asks about allowing partners to use their existing corporate identities without manual account creation, which is the core purpose of B2B collaboration.
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 External ID (B2B collaboration)
Microsoft Entra External ID (B2B collaboration) allows organizations to securely share applications and resources with external partners by letting them authenticate using their own corporate identities (e.g., from other Azure AD tenants, Microsoft accounts, or social identity providers). It eliminates the need to manually create and manage user accounts for partners, while enabling you to apply conditional access policies for granular control over external 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.
- ✗
Microsoft Entra Identity Protection
Why it's wrong here
Microsoft Entra Identity Protection is a security feature focused on detecting and remediating identity-based risks, such as impossible travel or leaked credentials, for existing user accounts within a Microsoft Entra tenant. While crucial for overall security, it does not provide the foundational mechanism for inviting external partners or managing their authentication flow to access applications; it monitors the security posture of identities already granted access.
- ✓
Microsoft Entra External ID (B2B collaboration)
Why this is correct
Microsoft Entra External ID (B2B collaboration) is the correct solution as it specifically enables organizations to invite external users, such as partners, to access their applications and resources using their own existing identities. This feature integrates partner users into the inviting organization's Microsoft Entra tenant as guest users, allowing for the application of robust access policies and secure management of their access to partner applications.
- ✗
Microsoft Entra Privileged Identity Management
Why it's wrong here
Microsoft Entra Privileged Identity Management (PIM) is designed to manage, control, and monitor access to important resources by providing just-in-time (JIT) and just-enough-access (JEA) for privileged roles within an organization. PIM focuses on elevating permissions for administrative tasks and auditing privileged access, which is distinct from establishing the initial external authentication and authorization framework for general partner application access.
- ✗
Microsoft Entra Domain Services
Why it's wrong here
Microsoft Entra Domain Services provides managed domain services, including NTLM, Kerberos, and LDAP, primarily for Azure virtual machines and other cloud resources that require traditional domain controller functionality. It extends a classic domain experience to the cloud for IaaS workloads and legacy applications, but it does not facilitate external identity federation or B2B collaboration for secure partner access to cloud applications.
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Last reviewed: Jun 11, 2026
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