The answer is to create a Conditional Access policy in Entra ID that targets all guest users and requires MFA. This is correct because Conditional Access policies are the modern, granular method for enforcing security controls like multi-factor authentication based on user type, location, or application, and they apply across all integrated apps—including Teams—without needing per-user settings. On the SC-900 exam, this scenario tests your understanding of how Entra ID Conditional Access policies govern guest user access, often contrasting them with deprecated per-user MFA or broader external identity configurations. A common trap is selecting a policy that targets all external users, which is too broad and could affect business partners, whereas the correct scope is specifically “guest users.” Remember the memory tip: “Conditional Access for guests is the modern test—per-user MFA is a deprecated guest.”
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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.
Your company has a Microsoft 365 E5 subscription and uses Microsoft Teams for collaboration. The security team needs to ensure that guest users invited to Teams channels are required to pass multi-factor authentication (MFA) before accessing company resources. Currently, guest users are invited via Entra ID External ID but MFA is not enforced. You need to enforce MFA for all guest users. The solution should apply to all guest users across all applications. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a Conditional Access policy in Entra ID that targets all guest users and requires MFA
Option A is correct because a Conditional Access policy targeting all guest users and requiring MFA is the standard way to enforce MFA for guests across applications. Option B is wrong because it adds a step for all external users, which is broader than needed. Option C is wrong because it does not enforce MFA. Option D is wrong because the per-user MFA option is deprecated and less flexible.
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.
✓
Create a Conditional Access policy in Entra ID that targets all guest users and requires MFA
Why this is correct
Conditional Access policies can be scoped to guest users and require MFA for all apps.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set the guest user access level in Teams to allow only authenticated users
Why it's wrong here
This does not enforce MFA; it only controls access levels.
✗
Configure Entra ID External ID to require MFA for all external users
Why it's wrong here
External ID settings can require MFA but this applies to all external users, not just guests, and may be overly broad.
✗
Enable MFA for each guest user account individually
Why it's wrong here
Per-user MFA is deprecated and not the recommended method for bulk enforcement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a Conditional Access policy in Entra ID that targets all guest users and requires MFA — Option A is correct because a Conditional Access policy targeting all guest users and requiring MFA is the standard way to enforce MFA for guests across applications. Option B is wrong because it adds a step for all external users, which is broader than needed. Option C is wrong because it does not enforce MFA. Option D is wrong because the per-user MFA option is deprecated and less flexible.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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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