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.
Your company, Proseware, uses Microsoft Entra ID P2. You have a custom application that integrates with Microsoft Graph API to read user profiles. The application uses client credentials flow (application permissions). You need to ensure that the application can only read user profiles and not perform any other operations. Additionally, you want to review and approve the permissions periodically. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
In Microsoft Entra ID, grant the application the User.Read.All permission and configure an access review for the application permissions.
Option D is correct because the application uses client credentials flow (application permissions), which requires granting an application permission like User.Read.All to read all user profiles. Configuring an access review for the application permissions in Microsoft Entra ID allows periodic review and approval of those permissions, meeting the requirement to ensure the app can only read user profiles and that permissions are reviewed periodically.
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 to restrict the app to read-only operations.
Why it's wrong here
Conditional Access does not control permission scopes.
✗
Enable Privileged Identity Management for the app and require approval for each API call.
Why it's wrong here
PIM is for role activation, not API permissions.
✗
Use delegated permissions for the application and assign users to the app role.
Why it's wrong here
Client credentials flow requires application permissions, not delegated.
✓
In Microsoft Entra ID, grant the application the User.Read.All permission and configure an access review for the application permissions.
Why this is correct
This grants the minimal permission and enables periodic review.
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 may confuse Conditional Access policies or PIM with permission management, not realizing that application permissions in the client credentials flow are static and require access reviews for periodic oversight, not dynamic runtime controls.
Detailed technical explanation
How to think about this question
In the OAuth 2.0 client credentials flow, the application authenticates as itself using its client ID and secret or certificate, and receives an access token containing application permissions (app roles) rather than delegated permissions. The User.Read.All application permission grants the app the ability to read all user profiles in the directory without a signed-in user. Access reviews in Microsoft Entra ID allow administrators to periodically review and confirm or revoke such application permissions, ensuring least privilege over time.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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: In Microsoft Entra ID, grant the application the User.Read.All permission and configure an access review for the application permissions. — Option D is correct because the application uses client credentials flow (application permissions), which requires granting an application permission like User.Read.All to read all user profiles. Configuring an access review for the application permissions in Microsoft Entra ID allows periodic review and approval of those permissions, meeting the requirement to ensure the app can only read user profiles and that permissions are reviewed periodically.
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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Question Discussion
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