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SC-900 Practice Question: Describe the capabilities of Microsoft security solutions

You are the security administrator for a small business that uses Microsoft 365 Business Premium. The company wants to enable multi-factor authentication (MFA) for all users. You need to ensure that users are prompted for MFA when they sign in from unfamiliar locations or devices. The solution should be easy to deploy without additional licensing. Which of the following should you configure?

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

Enable security defaults in Microsoft Entra ID

Security defaults are a pre-configured set of security policies that include MFA based on risk, specifically prompting for MFA when users sign in from unfamiliar locations or devices, and are available without additional licensing. Option A is incorrect because while Conditional Access policies are available with Microsoft 365 Business Premium (which includes Microsoft Entra ID P1), a simple policy requiring MFA for *all* cloud apps would prompt for MFA every time, not specifically when signing in from unfamiliar locations or devices. To achieve risk-based MFA with Conditional Access that specifically targets unfamiliar locations/devices, more advanced configurations or potentially Microsoft Entra ID P2 features (for advanced sign-in risk detection) might be needed, which would go against the 'easy to deploy' and 'no additional licensing' constraints if P2 is implied. Security defaults provide this risk-based MFA out-of-the-box without complex configuration or P2 licensing. Option C is incorrect because deploying the Microsoft Authenticator app alone does not enforce MFA; a policy such as security defaults or conditional access is needed to prompt for MFA based on location or device. Option D is incorrect because identity protection risk-based MFA requires Azure AD Premium P2 licensing, which is not included in Business Premium.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Create a conditional access policy in Microsoft Entra ID that requires MFA for all cloud apps

    Why it's wrong here

    Conditional access policies require Azure AD Premium licenses, which are not included in Microsoft 365 Business Premium.

  • Enable security defaults in Microsoft Entra ID

    Why this is correct

    Security defaults provide a pre-configured set of security policies that include MFA and are included with Microsoft 365 Business Premium without additional licensing.

  • Deploy the Microsoft Authenticator app and instruct users to enable it

    Why it's wrong here

    Deploying the Microsoft Authenticator app alone does not enforce MFA; users must also enable the app and a policy (such as security defaults) must be configured to require MFA from unfamiliar locations or devices.

  • Configure identity protection to enable risk-based MFA

    Why it's wrong here

    Identity protection risk-based MFA requires Azure AD Premium P2 licenses, which are not included in Microsoft 365 Business Premium.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.