SC-900 Describe the capabilities of Microsoft Entra Practice Question
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?
⚠ Common exam trap
Test-takers frequently confuse 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.
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
✓
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.
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
Creating new user accounts in your tenant for the acquired company's users would force them to manage entirely new credentials, abandoning their existing identities and potentially their established multifactor authentication methods. This approach significantly increases administrative burden by requiring manual provisioning and deprovisioning, and it creates a poor user experience by necessitating a complete identity migration rather than leveraging their existing Microsoft Entra ID tenant.
- ✗
Set up a federation trust between your tenant and the other company's on-premises Active Directory.
Why it's wrong here
A federation trust with on-premises Active Directory would not satisfy the requirement because the acquired company's identities reside in a separate Microsoft Entra ID tenant, not in an on-premises directory; federation trusts bridge on-premises AD to Entra ID, not between two Entra ID tenants. This option is tempting because federation is commonly used to enable single sign-on across identity boundaries, and it would be correct if the acquired company relied solely on on-premises Active Directory without their own Entra ID tenant.
- ✗
Use Microsoft Entra B2C to create a custom identity provider for the other company.
Why it's wrong here
Microsoft Entra B2C (Business-to-Consumer) is specifically designed for managing customer identities and access to consumer-facing applications, not for integrating identities from another business's Microsoft Entra ID tenant. While B2C can support custom identity providers, its primary purpose is to provide a scalable, secure identity platform for millions of external customers, making it an inappropriate and overly complex solution for a business-to-business merger scenario involving organizational users.
- ✓
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
Microsoft Entra B2B collaboration is the correct and most efficient solution for integrating users from another Microsoft Entra ID tenant following a merger. It allows Fabrikam to invite the acquired company's users as guest accounts, enabling them to authenticate using their existing credentials from their home tenant. Furthermore, Fabrikam can apply its own Conditional Access policies to these guest users, ensuring consistent security and compliance standards are enforced for all access to its resources.
Go deeper
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Identity 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
Organization
An Organization is a top-level container in Google Cloud that represents your company or entities and serves as the root node for all your cloud resources, policies, and access control.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SC-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-900 exam.