- A
Enable Microsoft Entra Permissions Management.
Why wrong: Permissions Management is for managing permissions across multi-cloud environments, not identity providers.
- B
Deploy Microsoft Entra Verified ID.
Why wrong: Verified ID is for issuing and verifying verifiable credentials, not for social sign-in.
- C
Configure Microsoft Entra B2B collaboration for guest users.
Why wrong: B2B collaboration is for inviting external business users, not for social identity providers.
- D
Configure Microsoft Entra External ID with social identity providers.
External ID supports social identity providers and allows configuration of conditional access policies.
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. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 uses Microsoft Entra ID for identity management. You need to ensure that users can sign in using their existing social media accounts, such as Google or Facebook, while maintaining security and compliance with conditional access policies. What should you configure?
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 Microsoft Entra External ID with social identity providers.
Option D is correct because Microsoft Entra External ID (formerly Azure AD External Identities) allows you to configure social identity providers such as Google and Facebook as external identity sources. This enables users to sign in with their existing social media accounts while still being subject to your tenant's conditional access policies, ensuring security and compliance.
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.
- ✗
Enable Microsoft Entra Permissions Management.
Why it's wrong here
Permissions Management is for managing permissions across multi-cloud environments, not identity providers.
- ✗
Deploy Microsoft Entra Verified ID.
Why it's wrong here
Verified ID is for issuing and verifying verifiable credentials, not for social sign-in.
- ✗
Configure Microsoft Entra B2B collaboration for guest users.
Why it's wrong here
B2B collaboration is for inviting external business users, not for social identity providers.
- ✓
Configure Microsoft Entra External ID with social identity providers.
Why this is correct
External ID supports social identity providers and allows configuration of conditional access policies.
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 guest users) with Microsoft Entra External ID (which includes social identity providers for consumer-facing apps), leading candidates to incorrectly select option C.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Entra External ID uses OAuth 2.0 and OpenID Connect protocols to federate with social identity providers. When configured, the user is redirected to the social provider's authorization endpoint (e.g., Google's OAuth 2.0 endpoint), and upon successful authentication, an ID token is returned to Entra ID, which then issues its own token for the application. This federation allows conditional access policies to evaluate the sign-in risk and enforce controls like MFA or device compliance, even though the user authenticates externally.
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.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe the capabilities of Microsoft Entra — study guide chapter
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FAQ
Questions learners often ask
What does this SC-900 question test?
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: Configure Microsoft Entra External ID with social identity providers. — Option D is correct because Microsoft Entra External ID (formerly Azure AD External Identities) allows you to configure social identity providers such as Google and Facebook as external identity sources. This enables users to sign in with their existing social media accounts while still being subject to your tenant's conditional access policies, ensuring security and compliance.
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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Last reviewed: Jun 24, 2026
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.
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