- A
Configure B2B collaboration with the acquired company's IdP and enable MFA trust. In the parent tenant, create a Conditional Access policy that requires MFA for guest users.
This allows the acquired company to use their existing IdP, and MFA trust allows the parent tenant to accept the acquired company's MFA claims or enforce its own.
- B
Set up password hash synchronization from the acquired company's IdP to the parent tenant and enable MFA for all sync'ed users.
Why wrong: Password hash sync requires the acquired company to change their authentication infrastructure.
- C
Create new user accounts in the parent tenant for the acquired company's users and assign them Microsoft Entra ID P2 licenses to enable MFA via Conditional Access.
Why wrong: This requires managing separate accounts and passwords, increasing overhead.
- D
Migrate all acquired company users to the parent tenant's on-premises Active Directory and sync them to Microsoft Entra ID. Enable MFA via Conditional Access.
Why wrong: This is time-consuming and may not meet the 30-day deadline.
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. 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.
You are the identity administrator for a large enterprise using Microsoft Entra ID. The company has 50,000 users and recently acquired a smaller company with 2,000 users that uses a third-party identity provider (IdP) based on SAML 2.0. The acquisition must be fully integrated within 30 days. The CISO mandates that all users must use MFA for any access to cloud applications. The acquired company's users currently do not use MFA. You need to choose an approach that minimizes changes to the acquired company's current authentication infrastructure while meeting the MFA requirement. The solution must also allow the acquired company's users to access resources in the parent tenant using their existing credentials. What should you do?
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
Configure B2B collaboration with the acquired company's IdP and enable MFA trust. In the parent tenant, create a Conditional Access policy that requires MFA for guest users.
Option A is correct because B2B collaboration allows the acquired company's users to authenticate against their existing SAML 2.0 IdP using their current credentials, minimizing infrastructure changes. By enabling MFA trust, the parent tenant can rely on the MFA claims already issued by the third-party IdP if it supports MFA, but since it does not, you can enforce MFA in the parent tenant via a Conditional Access policy that requires MFA for guest users. This approach meets the CISO's mandate without requiring the acquired company to deploy MFA on their own IdP or migrate users.
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.
- ✓
Configure B2B collaboration with the acquired company's IdP and enable MFA trust. In the parent tenant, create a Conditional Access policy that requires MFA for guest users.
Why this is correct
This allows the acquired company to use their existing IdP, and MFA trust allows the parent tenant to accept the acquired company's MFA claims or enforce its own.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Set up password hash synchronization from the acquired company's IdP to the parent tenant and enable MFA for all sync'ed users.
Why it's wrong here
Password hash sync requires the acquired company to change their authentication infrastructure.
- ✗
Create new user accounts in the parent tenant for the acquired company's users and assign them Microsoft Entra ID P2 licenses to enable MFA via Conditional Access.
Why it's wrong here
This requires managing separate accounts and passwords, increasing overhead.
- ✗
Migrate all acquired company users to the parent tenant's on-premises Active Directory and sync them to Microsoft Entra ID. Enable MFA via Conditional Access.
Why it's wrong here
This is time-consuming and may not meet the 30-day deadline.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume B2B collaboration cannot enforce MFA for guest users, or they mistakenly think password hash synchronization is a valid option for a third-party SAML IdP, when in fact PHS is only applicable to on-premises Active Directory environments.
Detailed technical explanation
How to think about this question
B2B collaboration with a SAML 2.0 IdP works by establishing federation trust at the tenant level, where the parent tenant's Entra ID redirects authentication requests to the external IdP's SAML endpoint. The MFA trust feature (enabled via the 'Trust MFA from external IdP' toggle in B2B settings) allows Entra ID to accept the 'AuthnContextClassRef' or 'AuthnInstant' from the SAML assertion as proof of MFA, but if the external IdP does not issue MFA claims, Conditional Access policies can still enforce MFA by prompting the guest user to register and satisfy MFA within the parent tenant. This hybrid approach is commonly used in mergers and acquisitions where the acquired company retains its own identity provider.
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 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
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this SC-900 question test?
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: Configure B2B collaboration with the acquired company's IdP and enable MFA trust. In the parent tenant, create a Conditional Access policy that requires MFA for guest users. — Option A is correct because B2B collaboration allows the acquired company's users to authenticate against their existing SAML 2.0 IdP using their current credentials, minimizing infrastructure changes. By enabling MFA trust, the parent tenant can rely on the MFA claims already issued by the third-party IdP if it supports MFA, but since it does not, you can enforce MFA in the parent tenant via a Conditional Access policy that requires MFA for guest users. This approach meets the CISO's mandate without requiring the acquired company to deploy MFA on their own IdP or migrate users.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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