SC-900 Practice Question: Describe the concepts of security, compliance, and identity
Which Microsoft Entra ID feature allows an organization to provide external partners with access to its applications while maintaining control over authentication and governance?
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
Microsoft Entra External ID (including B2B collaboration) enables secure sharing of apps with external users. It allows the organization to manage identities and enforce policies like MFA for guests.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Microsoft Entra ID Governance
Why it's wrong here
Microsoft Entra ID Governance focuses on managing and monitoring access to resources for internal users, ensuring compliance through access reviews, entitlement management, and lifecycle workflows. While it can govern existing guest user access by reviewing their permissions, its primary function is not to facilitate the initial onboarding or authentication experience for external identities accessing corporate applications.
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Microsoft Entra Domain Services
Why it's wrong here
Microsoft Entra Domain Services provides managed domain controllers for lift-and-shift applications that require traditional directory services like LDAP, Kerberos, and NTLM authentication. It extends a managed domain into an Azure virtual network, allowing legacy applications to authenticate against a domain without deploying and managing domain controllers, but it does not directly manage external user access to cloud-native applications.
- ✓
Microsoft Entra External ID
Why this is correct
Microsoft Entra External ID is the comprehensive solution specifically designed to manage identities for external users, enabling them to access your applications and resources securely. It supports Business-to-Business (B2B) collaboration for guest users and Business-to-Consumer (B2C) for customer-facing applications, offering features like self-service sign-up, custom branding, and integration with various social and enterprise identity providers.
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Microsoft Entra Permissions Management
Why it's wrong here
Microsoft Entra Permissions Management is a Cloud Infrastructure Entitlement Management (CIEM) solution that provides granular visibility and control over permissions across multi-cloud environments. Its core purpose is to detect, right-size, and monitor permissions for all identities, both human and machine, to reduce the attack surface from over-privileged access, rather than managing external user authentication to applications.
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Microsoft Entra ID
Key term
B2B collaboration
B2B collaboration is a feature in Microsoft Entra ID that lets organizations securely share access to their apps and resources with external business partners using their own identity systems.
Key term
Authentication
Authentication is the process of verifying that someone or something is who or what it claims to be before granting access to a system or resource.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.