This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. 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.
Which THREE components are part of the Microsoft Entra External Identities suite?
Azure AD B2B (now Entra External ID)
This is the core of External Identities.
Conditional Access
Why wrong: Conditional Access is a policy engine, not part of External Identities.
B2C (business-to-consumer)
B2C is a customer identity platform.
B2B collaboration
B2B collaboration allows external users to access resources.
Identity Protection
Why wrong: Identity Protection is a security feature, not part of External Identities.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Azure AD B2B (now Entra External ID)
Option A is correct because Azure AD B2B (now rebranded as Entra External ID) is a core component of the Microsoft Entra External Identities suite, enabling organizations to securely share applications and resources with external users (guests) while maintaining control over their own corporate data. This service allows external partners to use their own identity provider (e.g., Microsoft, Google, or SAML/WS-Fed IdPs) without requiring a separate account in the tenant.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure AD B2B (now Entra External ID)
Why this is correct
This is the core of External Identities.
Related concept
Read the scenario before looking for a memorised answer.
Conditional Access
Why it's wrong here
Conditional Access is a policy engine, not part of External Identities.
B2C (business-to-consumer)
Why this is correct
B2C is a customer identity platform.
Related concept
Read the scenario before looking for a memorised answer.
B2B collaboration
Why this is correct
B2B collaboration allows external users to access resources.
Related concept
Read the scenario before looking for a memorised answer.
Identity Protection
Why it's wrong here
Identity Protection is a security feature, not part of External Identities.
Common exam traps
The trap here is that candidates often 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.
Detailed technical explanation
The Microsoft Entra External Identities suite encompasses both B2B collaboration (inviting external users as guests with their own identities) and B2C (business-to-consumer) scenarios, where customers sign in using social or local accounts via customizable policies. Under the hood, B2B collaboration leverages cross-tenant trust relationships and claims transformation rules, while B2C uses a separate tenant and the Identity Experience Framework (IEF) to orchestrate sign-up/sign-in flows with OAuth 2.0 and OpenID Connect protocols. A subtle behavior is that B2B guest users are represented as User objects in the tenant but with a UserType of 'Guest', allowing granular access control without duplicating identity stores.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
The correct answer is: Azure AD B2B (now Entra External ID) — Option A is correct because Azure AD B2B (now rebranded as Entra External ID) is a core component of the Microsoft Entra External Identities suite, enabling organizations to securely share applications and resources with external users (guests) while maintaining control over their own corporate data. This service allows external partners to use their own identity provider (e.g., Microsoft, Google, or SAML/WS-Fed IdPs) without requiring a separate account in the tenant.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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