- A
Configure Self-Service Password Reset (SSPR) for all users. Enable Microsoft Entra ID Protection. Create an access review for guests.
Why wrong: SSPR does not enforce MFA or passwordless authentication.
- B
Use Microsoft Entra ID Protection to enforce MFA based on risk. Implement Privileged Identity Management (PIM) for IT. Configure access reviews for guests.
Why wrong: PIM is for privileged roles, not passwordless enforcement.
- C
Enable security defaults to enforce MFA for all users. Configure Microsoft Entra ID Protection to monitor anomalies. Use Microsoft Entra ID Governance to automate guest access reviews.
Why wrong: Security defaults enforce MFA for all, not just sensitive apps, and do not enforce passwordless for IT.
- D
Create Conditional Access policies: one requiring MFA for the finance app, another requiring passwordless authentication strength for IT. Enable Microsoft Entra ID Protection to log and monitor sign-in risks. Create an access review for guest users.
Meets all requirements: MFA for finance app, passwordless for IT, monitoring via ID Protection, and guest reviews.
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. 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 the identity administrator for a multinational company using Microsoft Entra ID. The company has a Microsoft 365 E5 subscription. The security team wants to enforce the following requirements:
1. All users must use multi-factor authentication (MFA) when accessing sensitive applications (e.g., finance app). 2. Users from the IT department must use passwordless authentication methods (e.g., Windows Hello for Business) when accessing any resource. 3. All access to sensitive applications must be logged and monitored for anomalous activity. 4. Guest users from partner organizations must be automatically reviewed quarterly to ensure they still need access. 5. The company wants to minimize administrative overhead by automating as much as possible.
You need to design a solution that meets these requirements using Microsoft Entra ID capabilities. Which combination of actions should you take?
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 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
Create Conditional Access policies: one requiring MFA for the finance app, another requiring passwordless authentication strength for IT. Enable Microsoft Entra ID Protection to log and monitor sign-in risks. Create an access review for guest users.
Option D is correct because it uses Conditional Access policies to enforce MFA for the finance app and passwordless authentication strength for IT, meeting requirements 1 and 2. Microsoft Entra ID Protection logs and monitors sign-in risks for sensitive apps (requirement 3), and an access review for guest users automates quarterly reviews (requirement 4). This minimizes administrative overhead by leveraging automation, aligning with requirement 5.
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 Self-Service Password Reset (SSPR) for all users. Enable Microsoft Entra ID Protection. Create an access review for guests.
Why it's wrong here
SSPR does not enforce MFA or passwordless authentication.
- ✗
Use Microsoft Entra ID Protection to enforce MFA based on risk. Implement Privileged Identity Management (PIM) for IT. Configure access reviews for guests.
Why it's wrong here
PIM is for privileged roles, not passwordless enforcement.
- ✗
Enable security defaults to enforce MFA for all users. Configure Microsoft Entra ID Protection to monitor anomalies. Use Microsoft Entra ID Governance to automate guest access reviews.
Why it's wrong here
Security defaults enforce MFA for all, not just sensitive apps, and do not enforce passwordless for IT.
- ✓
Create Conditional Access policies: one requiring MFA for the finance app, another requiring passwordless authentication strength for IT. Enable Microsoft Entra ID Protection to log and monitor sign-in risks. Create an access review for guest users.
Why this is correct
Meets all requirements: MFA for finance app, passwordless for IT, monitoring via ID Protection, and guest reviews.
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 confuse security defaults (which enforce MFA for all users but lack granularity) with Conditional Access policies (which allow targeted MFA and authentication strength requirements), and they may overlook that passwordless enforcement requires an authentication strength policy, not just MFA.
Detailed technical explanation
How to think about this question
Conditional Access policies in Microsoft Entra ID use conditions like user/group membership, application, and sign-in risk to grant access controls such as MFA or authentication strength (e.g., Windows Hello for Business). Authentication strength policies allow granular enforcement of passwordless methods via the 'Require authentication strength' control, which maps to specific credential types defined in the Microsoft authentication methods policy. Entra ID Protection evaluates sign-in risk in real-time using machine learning models, and its logs feed into monitoring tools like Microsoft Sentinel for anomaly detection.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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: Create Conditional Access policies: one requiring MFA for the finance app, another requiring passwordless authentication strength for IT. Enable Microsoft Entra ID Protection to log and monitor sign-in risks. Create an access review for guest users. — Option D is correct because it uses Conditional Access policies to enforce MFA for the finance app and passwordless authentication strength for IT, meeting requirements 1 and 2. Microsoft Entra ID Protection logs and monitors sign-in risks for sensitive apps (requirement 3), and an access review for guest users automates quarterly reviews (requirement 4). This minimizes administrative overhead by leveraging automation, aligning with requirement 5.
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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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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