Question 260 of 1,411

Quick Answer

The answer is that the policy requires MFA for all external users accessing any cloud app. This is correct because the Conditional Access policy in Microsoft Entra ID is configured with two key assignments: it targets "all external users" as the identity scope, and applies to "all cloud apps" as the resource scope, with the grant control set to require multi-factor authentication. There are no exclusions for specific apps, user roles, or user types like guests, so every external identity—whether a B2B collaboration guest, a partner, or a vendor—must pass MFA before accessing any cloud application. On the SC-900 exam, this scenario tests your ability to read a policy’s assignments and understand that "external users" is a broader category than just "guest users," a common trap. Remember the memory tip: "All external, all apps, no exclusions" equals MFA for everyone outside your tenant.

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. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.

Exhibit

{
  "ConditionalAccessPolicy": {
    "Name": "Require MFA for External Users",
    "Conditions": {
      "UsersAndGroups": {
        "IncludeExternalUsers": true
      },
      "Applications": {
        "IncludeAll": true
      }
    },
    "Controls": {
      "Grant": {
        "RequireMfa": true
      }
    }
  }
}

Refer to the exhibit. You have a Conditional Access policy defined in Microsoft Entra ID. What is the effect of this policy?

Question 1mediummultiple choice
Full question →

Exhibit

{
  "ConditionalAccessPolicy": {
    "Name": "Require MFA for External Users",
    "Conditions": {
      "UsersAndGroups": {
        "IncludeExternalUsers": true
      },
      "Applications": {
        "IncludeAll": true
      }
    },
    "Controls": {
      "Grant": {
        "RequireMfa": true
      }
    }
  }
}

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

Requires MFA for all external users accessing any cloud app

Option D is correct because the policy includes all external users and all cloud apps, requiring MFA. Option A is incorrect because it does not exclude any apps. Option B is incorrect because it includes all external users, not just guest users. Option C is incorrect because it does not exclude external users with specific roles.

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.

  • Requires MFA for all external users accessing any cloud app

    Why this is correct

    The policy targets all external users and all cloud apps with MFA requirement.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Requires MFA for guest users only

    Why it's wrong here

    It includes all external users, not just guests.

  • Requires MFA for all users accessing all cloud apps

    Why it's wrong here

    The policy only includes external users.

  • Requires MFA for external users except those with global admin role

    Why it's wrong here

    No exclusion based on role.

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.

What to study next

Got this wrong? Here's your next step.

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.

Related practice questions

Related SC-900 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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FAQ

Questions learners often ask

What does this SC-900 question test?

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: Requires MFA for all external users accessing any cloud app — Option D is correct because the policy includes all external users and all cloud apps, requiring MFA. Option A is incorrect because it does not exclude any apps. Option B is incorrect because it includes all external users, not just guest users. Option C is incorrect because it does not exclude external users with specific roles.

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.

About these practice questions

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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 are reviewing a conditional access policy in Microsoft Entra ID. The policy is enabled and applies to all cloud apps. Which users are affected by this policy?

easy
  • A.All users who are members of any Azure AD administrative role
  • B.All users who are members of the Global Administrator role only
  • C.All users who are members of the Global Administrator or Exchange Administrator role
  • D.All users in the organization

Why C: Option D is correct because the property 'includeRoles' specifies that only users assigned the Global Administrator or Exchange Administrator roles are included. Option A is wrong because the policy does not apply to all users. Option B is wrong because it applies only to roles, not all users. Option C is wrong because it does not apply to all admin roles, only the two specified.

Last reviewed: Jun 21, 2026

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This SC-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-900 exam.