SC-900 Describe the capabilities of Microsoft Entra Practice Question
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 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?
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.
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 Identity Protection
Why it's wrong here
Identity Protection detects identity-based risks but does not facilitate external authentication for partners.
✓
Microsoft Entra External ID (B2B collaboration)
Why this is correct
This feature enables partners to use their own identities to sign in, and you can apply policies to manage access.
Related concept
Read the scenario before looking for a memorised answer.
✗
Microsoft Entra Privileged Identity Management
Why it's wrong here
PIM manages just-in-time access for privileged roles, not external partner authentication.
✗
Microsoft Entra Domain Services
Why it's wrong here
Domain Services provides managed domain services (e.g., LDAP, Kerberos) for VMs, not external identity management.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that 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.
Detailed technical explanation
How to think about this question
Under the hood, B2B collaboration uses the SAML 2.0 or OpenID Connect protocol to establish cross-tenant trust, allowing external users to authenticate against their home tenant and receive a token that Microsoft Entra ID validates. A subtle behavior is that B2B collaboration does not require a trust relationship between the two tenants; instead, it uses a redemption process where the external user's identity is represented as a guest user object in the resource tenant. In a real-world scenario, a company can configure conditional access policies to require multi-factor authentication for all B2B guest users accessing a sensitive partner application, even if the partner's home tenant does not enforce MFA.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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 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.
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.
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Question Discussion
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