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 organization, Fabrikam, has recently merged with another company. You need to provide seamless access to resources for users from both companies while maintaining separate identity directories. The users from the acquired company have their own Microsoft Entra ID tenant. You need to enable them to access applications in your tenant using their existing corporate credentials, without creating new accounts. Additionally, you want to enforce conditional access policies from your tenant for these users. Which approach should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use Microsoft Entra B2B collaboration to invite users from the other tenant as guest users, and apply conditional access policies to guest users.
Microsoft Entra B2B collaboration allows you to invite external users from another Microsoft Entra tenant to access your applications using their own corporate identities. This approach meets the requirement of not creating new accounts, and because guest users are represented as user objects in your tenant, you can enforce your own conditional access policies on them. Option D is correct because it directly addresses the need for seamless access with separate directories and policy control.
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 new user accounts in your tenant for the acquired company's users and assign them access.
Why it's wrong here
This does not allow them to use their existing credentials.
✗
Set up a federation trust between your tenant and the other company's on-premises Active Directory.
Why it's wrong here
This is more complex and unnecessary since both use Entra ID.
✗
Use Microsoft Entra B2C to create a custom identity provider for the other company.
Why it's wrong here
B2C is for external customers, not business partners.
✓
Use Microsoft Entra B2B collaboration to invite users from the other tenant as guest users, and apply conditional access policies to guest users.
Why this is correct
B2B collaboration supports cross-tenant access with existing credentials and policy enforcement.
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 confusing Microsoft Entra B2B collaboration (for business-to-business guest access with existing corporate identities) with Microsoft Entra B2C (for customer-facing identity management), leading candidates to incorrectly select option C.
Detailed technical explanation
How to think about this question
Microsoft Entra B2B collaboration works by exchanging claims via SAML or WS-Federation between the resource tenant and the user's home tenant. When a guest user accepts an invitation, a user object is created in the resource tenant with a UserType of 'Guest', allowing the resource tenant to apply conditional access policies, including MFA, device compliance, and sign-in risk policies, independently of the home tenant's policies. This is distinct from B2C, which uses OpenID Connect and is optimized for consumer scenarios with custom identity providers.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
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: Use Microsoft Entra B2B collaboration to invite users from the other tenant as guest users, and apply conditional access policies to guest users. — Microsoft Entra B2B collaboration allows you to invite external users from another Microsoft Entra tenant to access your applications using their own corporate identities. This approach meets the requirement of not creating new accounts, and because guest users are represented as user objects in your tenant, you can enforce your own conditional access policies on them. Option D is correct because it directly addresses the need for seamless access with separate directories and policy control.
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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