SC-900 Describe the capabilities of Microsoft Entra Practice Question
Your company uses Microsoft Entra ID. You need to enable users to sign in to third-party SaaS applications using their corporate credentials without storing passwords in those apps. Which Microsoft Entra feature should you configure?
⚠ Common exam trap
It's easy for candidates to confuse Conditional Access or Identity Protection with the core mechanism for passwordless federation, not realizing that SSO via federation is the specific feature that removes password storage in the third-party app.
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 single sign-on (SSO) using federation
Configuring single sign-on (SSO) using federation allows users to authenticate against Microsoft Entra ID (their corporate identity provider) and then pass a security token to third-party SaaS applications. This eliminates the need for the SaaS app to store or manage user passwords, as authentication happens via standards like SAML 2.0 or WS-Federation, and the app trusts the token issued by Entra ID.
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 single sign-on (SSO) using federation
Why this is correct
Configuring single sign-on (SSO) using federation establishes a trust relationship where Microsoft Entra ID acts as the identity provider. When users access an application, they are redirected to Entra ID for authentication. Upon successful verification, Entra ID issues a security token to the application, granting access without the application ever storing or directly handling the user's password, thereby centralizing authentication and eliminating application-specific credential storage.
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Deploy Microsoft Entra Self-Service Password Reset
Why it's wrong here
Deploying Microsoft Entra Self-Service Password Reset (SSPR) empowers users to reset their forgotten or locked passwords for their Entra ID accounts without administrator intervention. While SSPR significantly improves user productivity and reduces help desk calls, it primarily addresses password management for the *Entra ID account itself*. It does not alter how individual applications handle or store credentials, nor does it eliminate the need for applications to manage their own authentication mechanisms if they are not integrated with Entra ID for SSO.
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Configure conditional access policies with MFA
Why it's wrong here
Configuring Conditional Access policies with Multi-Factor Authentication (MFA) enhances security by requiring additional verification steps based on specific conditions, such as location or device compliance. While MFA significantly strengthens the authentication process by making it harder for unauthorized users to gain access, it is a *security layer on top of authentication*. It does not inherently change the underlying mechanism of how applications store or manage user credentials; the application would still need to process the initial authentication request, potentially involving its own password storage, before MFA is enforced by Entra ID.
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Enable Microsoft Entra Identity Protection
Why it's wrong here
Enabling Microsoft Entra Identity Protection is a security feature that detects potential vulnerabilities affecting an organization's identities, such as leaked credentials, impossible travel, or anomalous sign-in activities. It provides risk-based policies to automatically respond to these threats, for instance, by blocking sign-ins or requiring MFA. However, Identity Protection focuses on *detecting and remediating identity-based risks* and does not directly address or eliminate the need for applications to store or manage user passwords.
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Related to this question
Learn chapter
Core Security Concepts
Key term
Identity
Identity is the unique set of attributes that defines a user, device, or service in a computer system, determining what they can access and do.
Key term
Federation
Federation is a system that lets you use one set of login credentials (like your work email and password) to access resources across different organizations or services without needing separate accounts for each one.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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