This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 configuring Microsoft Entra ID for a new user. The user will need to access resources in multiple Microsoft cloud services (Office 365, Azure, Dynamics 365). Which Microsoft Entra edition is minimally required to provide single sign-on (SSO) across these services?
Microsoft Entra ID Free (included with Office 365)
Why wrong: That is the same as Free; the question asks minimally required.
Microsoft Entra ID P2
Why wrong: P2 is premium; Free already includes SSO.
Microsoft Entra ID Free
SSO across Microsoft cloud services is available in the Free edition.
Microsoft Entra ID P1
Why wrong: P1 is premium; Free already includes SSO.
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 ID Free
Microsoft Entra ID Free (included with Office 365) provides SSO across Microsoft cloud services like Office 365, Azure, and Dynamics 365 because it supports federated identity and the same user identity is used across all these services. SSO is a core capability of the Free edition, requiring no additional licensing for this specific scenario. The question asks for the minimally required edition, and since Free supports SSO across these services, it is the correct choice.
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.
Microsoft Entra ID Free (included with Office 365)
Why it's wrong here
That is the same as Free; the question asks minimally required.
Microsoft Entra ID P2
Why it's wrong here
P2 is premium; Free already includes SSO.
Microsoft Entra ID Free
Why this is correct
SSO across Microsoft cloud services is available in the Free edition.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Entra ID P1
Why it's wrong here
P1 is premium; Free already includes SSO.
Common exam traps
The trap here is that candidates often assume SSO requires a premium edition like P1 or P2, but Microsoft Entra ID Free already provides SSO across Microsoft cloud services, and the question specifically asks for the minimally required edition.
Detailed technical explanation
SSO in Microsoft Entra ID works by using the same identity token (issued via OAuth 2.0 or SAML 2.0) across all integrated services, relying on a common tenant directory. The Free edition supports up to 500,000 directory objects and includes core authentication protocols, making it sufficient for SSO without needing premium features. In a real-world scenario, a small business using Office 365, Azure, and Dynamics 365 can achieve seamless SSO with just the Free edition, as long as they don't require advanced security policies.
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 ID Free — Microsoft Entra ID Free (included with Office 365) provides SSO across Microsoft cloud services like Office 365, Azure, and Dynamics 365 because it supports federated identity and the same user identity is used across all these services. SSO is a core capability of the Free edition, requiring no additional licensing for this specific scenario. The question asks for the minimally required edition, and since Free supports SSO across these services, it is the correct choice.
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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