SC-900 Describe the capabilities of Microsoft Entra Practice Question
This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You are an identity consultant for a mid-sized company with 5,000 employees. They use Microsoft Entra ID P1 and Microsoft Intune for device management. The company wants to implement passwordless authentication for all employees to improve security and user experience. Currently, users sign in with username and password plus MFA via the Microsoft Authenticator app. The company has a mix of Windows 10/11 devices (both domain-joined and Microsoft Entra joined) and iOS/Android mobile devices. They want to support passwordless sign-in on all platforms. The CTO is concerned about cost and wants to minimize additional licensing. Which passwordless method should you recommend?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use the Microsoft Authenticator app for passwordless sign-in
The Microsoft Authenticator app supports passwordless sign-in using phone-based authentication, which works on both iOS and Android devices and can be used to sign into Windows 10/11 devices via the 'Sign in with phone' feature. This method leverages existing Microsoft Entra ID P1 licensing without requiring additional costs, as it is included with the current P1 license. It provides a seamless user experience by eliminating the need for hardware tokens or additional infrastructure, aligning with the CTO's cost-minimization goal.
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.
✗
Enable Windows Hello for Business for all devices
Why it's wrong here
Windows Hello for Business does not support iOS/Android mobile devices.
✗
Deploy FIDO2 security keys to all employees
Why it's wrong here
FIDO2 keys require hardware purchase and distribution, increasing cost.
✗
Implement SMS-based one-time passcodes
Why it's wrong here
SMS-based OTP is not passwordless; it still requires a password first.
✓
Use the Microsoft Authenticator app for passwordless sign-in
Why this is correct
Authenticator app is free with existing licenses and supports all platforms.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume Windows Hello for Business is the only Microsoft passwordless solution for Windows devices, overlooking that the Microsoft Authenticator app can provide passwordless sign-in across all platforms (Windows, iOS, Android) without additional licensing or hardware costs.
Detailed technical explanation
How to think about this question
The Microsoft Authenticator app's passwordless sign-in uses the OAuth 2.0 Device Authorization Grant flow combined with FIDO2 WebAuthn standards on the mobile device, allowing the phone to act as a possession-based authenticator. Under the hood, the app generates a cryptographic key pair tied to the user's device, and the private key never leaves the phone, ensuring phishing resistance. In a real-world scenario, a user can approve a sign-in request on their phone without typing a password, even on a shared or unmanaged Windows device, by scanning a QR code or receiving a push notification.
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.
TExam Day Tips
→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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use the Microsoft Authenticator app for passwordless sign-in — The Microsoft Authenticator app supports passwordless sign-in using phone-based authentication, which works on both iOS and Android devices and can be used to sign into Windows 10/11 devices via the 'Sign in with phone' feature. This method leverages existing Microsoft Entra ID P1 licensing without requiring additional costs, as it is included with the current P1 license. It provides a seamless user experience by eliminating the need for hardware tokens or additional infrastructure, aligning with the CTO's cost-minimization goal.
What should I do if I get this SC-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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