SC-900 Describe the capabilities of Microsoft Entra Practice Question
Which THREE components are part of the Microsoft Entra External Identities suite?
⚠ Common exam trap
Many exam-takers confuse security features like Conditional Access or Identity Protection with the core identity management components of the External Identities suite, because Microsoft bundles these services under the broader Microsoft Entra umbrella, but the exam specifically tests which services directly handle external user identity lifecycle and 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
✓
B2B direct connect
Microsoft Entra External Identities is the suite of capabilities for managing external users, and it comprises three components: B2B collaboration (D), B2B direct connect (A), and B2C (business-to-consumer) (C). B2B collaboration (D) lets you invite partner users as guests into your tenant, where they authenticate with their own credentials and appear as guest objects in your directory. B2B direct connect (A) enables a mutual, two-way trust with another Microsoft Entra tenant so users can seamlessly access shared resources such as Teams shared channels without being represented as guests in your directory. B2C (C) provides identity and access management for consumer-facing applications, letting customers sign in with local or social identities. Conditional Access (B) and Identity Protection (E) are Microsoft Entra ID security features that govern and protect sign-ins, but they are not components of the External Identities suite.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
B2B direct connect
Why this is correct
Microsoft Entra B2B, now a foundational component within Microsoft Entra External ID, specifically enables organizations to collaborate securely with external partners. It allows guest users from other Microsoft Entra tenants or social identity providers to access applications and resources in your directory using their existing credentials, streamlining external access management. This capability is central to managing external identities for business-to-business scenarios.
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Conditional Access
Why it's wrong here
Conditional Access is a powerful policy engine within Microsoft Entra ID that evaluates various signals, such as user location, device compliance, and application, to enforce access policies. While it can be used to secure access for external identities managed by Entra External ID, it is a security control applied to identities, not a component of the External ID service itself. It governs how access is granted, rather than who is an external identity.
- ✓
B2C (business-to-consumer)
Why this is correct
Microsoft Entra B2C is a distinct customer identity and access management (CIAM) solution designed for applications that serve millions of consumers. It allows customers to sign up, sign in, and manage their profiles using local accounts or social identity providers, all while integrating with your applications. As a key offering under Microsoft Entra External ID, B2C specifically addresses business-to-consumer scenarios by managing identities for your application's end-users.
- ✓
B2B collaboration
Why this is correct
B2B collaboration is a specific capability within Microsoft Entra External ID that allows organizations to invite external users to access their applications and resources. It facilitates secure sharing and joint work by enabling guest users to sign in with their own credentials from their home directory or social identity provider. This feature is fundamental for enabling secure and controlled access for partners, vendors, and other external entities to collaborate on projects and shared resources.
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Identity Protection
Why it's wrong here
Microsoft Entra Identity Protection is a security tool that detects, investigates, and remediates identity-based risks. It uses machine learning to identify suspicious activities like leaked credentials, impossible travel, or anomalous sign-ins, and can automatically enforce policies like multi-factor authentication. While it plays a crucial role in securing all identities, including external ones, it is a risk detection and remediation service, not a core component that defines or manages external identities within the Entra External ID framework.
Go deeper
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Key term
Direct Connect
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Key term
Security
Security in IT is the practice of protecting systems, networks, and data from unauthorized access, damage, or theft.
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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.