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 TWO features are included in Microsoft Entra ID P2 licensing?
Passwordless authentication
Why wrong: Passwordless is available in P1.
Multifactor authentication (MFA)
Why wrong: MFA is included in P1.
Single sign-on (SSO) to SaaS apps
Why wrong: SSO is included in P1.
Microsoft Entra Privileged Identity Management
PIM is a P2 feature.
Microsoft Entra Identity Protection
Identity Protection is a P2 feature.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra Privileged Identity Management
Microsoft Entra ID P2 licensing includes Microsoft Entra Privileged Identity Management (PIM), which provides just-in-time privileged access, time-bound role assignments, and approval workflows to manage, control, and monitor access to Azure AD and Azure resources. PIM is a P2-only feature that helps reduce standing administrative privileges and enhances security posture.
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.
Passwordless authentication
Why it's wrong here
Passwordless is available in P1.
Multifactor authentication (MFA)
Why it's wrong here
MFA is included in P1.
Single sign-on (SSO) to SaaS apps
Why it's wrong here
SSO is included in P1.
Microsoft Entra Privileged Identity Management
Why this is correct
PIM is a P2 feature.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Entra Identity Protection
Why this is correct
Identity Protection is a P2 feature.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse features available in Microsoft Entra ID P1 (like MFA, SSO, and passwordless) with P2-exclusive features, forgetting that P2 adds only advanced identity protection and privileged identity management on top of P1.
Detailed technical explanation
Microsoft Entra Privileged Identity Management (PIM) uses Azure AD directory roles and Azure resource roles to enforce just-in-time activation, requiring users to request elevation with a reason and duration, which is audited via Azure AD logs. Identity Protection leverages machine learning to detect risky sign-ins and users, then automates remediation like requiring MFA or password reset via Conditional Access policies, both of which are P2-exclusive. In a real-world scenario, an organization with P2 can automatically block a user whose sign-in is flagged as high-risk from an anonymous IP address, while P1 would require manual configuration of Conditional Access without risk-based signals.
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: Microsoft Entra Privileged Identity Management — Microsoft Entra ID P2 licensing includes Microsoft Entra Privileged Identity Management (PIM), which provides just-in-time privileged access, time-bound role assignments, and approval workflows to manage, control, and monitor access to Azure AD and Azure resources. PIM is a P2-only feature that helps reduce standing administrative privileges and enhances security posture.
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
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.
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