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 wants to allow partners to use their own corporate credentials to access a specific SharePoint site. Which Microsoft Entra ID feature supports this?
App Registrations
Why wrong: App Registrations integrate apps with Entra ID.
B2C collaboration
Why wrong: B2C is for consumer-facing apps, not business partners.
Device Registration
Why wrong: Device Registration is for device management, not external users.
B2B collaboration
B2B collaboration enables partners to use their own credentials.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
B2B collaboration
Microsoft Entra ID B2B (business-to-business) collaboration allows you to invite external users from partner organizations to access your company's resources, such as SharePoint sites, using their own corporate credentials. This feature supports identity federation with the partner's Azure AD or other identity providers, enabling seamless single sign-on (SSO) without requiring the partner users to create new accounts in your tenant.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
App Registrations
Why it's wrong here
App Registrations integrate apps with Entra ID.
B2C collaboration
Why it's wrong here
B2C is for consumer-facing apps, not business partners.
Device Registration
Why it's wrong here
Device Registration is for device management, not external users.
B2B collaboration
Why this is correct
B2B collaboration enables partners to use their own credentials.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse B2B collaboration (for partner organizations with existing corporate identities) with B2C collaboration (for consumers using social or local accounts), leading them to select the wrong option when the question specifies 'partners' and 'corporate credentials'.
Detailed technical explanation
Under the hood, B2B collaboration uses the SAML 2.0 or WS-Federation protocol to federate with the partner's identity provider, or it can use email one-time passcode for users without Azure AD. When a partner user accesses the SharePoint site, Microsoft Entra ID issues a token that includes claims from the user's home tenant, allowing the resource tenant to enforce policies like conditional access and multi-factor authentication based on the partner's identity. In a real-world scenario, a company might configure cross-tenant access settings to trust specific claims from a partner's Azure AD, enabling seamless access while maintaining security compliance.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
The correct answer is: B2B collaboration — Microsoft Entra ID B2B (business-to-business) collaboration allows you to invite external users from partner organizations to access your company's resources, such as SharePoint sites, using their own corporate credentials. This feature supports identity federation with the partner's Azure AD or other identity providers, enabling seamless single sign-on (SSO) without requiring the partner users to create new accounts in your tenant.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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