The answer is Microsoft Entra External ID. This feature, formerly known as Azure AD B2B collaboration, is the correct choice because it enables external partners to access your organization’s resources by authenticating through their own identity providers, such as Google, Facebook, or their corporate Microsoft Entra tenant, without requiring you to manage their credentials. On the SC-900 exam, this question tests your understanding of identity federation and guest user scenarios, often appearing as a straightforward distinction between collaboration features and governance tools. A common trap is confusing External ID with Entra ID Governance, which handles internal access reviews and lifecycle management, not external authentication. Remember the memory tip: “External ID = bring your own identity for partners; Governance = manage who stays inside.”
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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 uses Microsoft Entra ID for identity management. You need to implement a solution that allows external partners to access resources using their own identity provider. Which Microsoft Entra feature 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
✓
External ID
Option A is correct because Entra External ID (formerly Azure AD B2B) allows external users to authenticate using their own identity providers. Option B is wrong because Entra ID Governance focuses on identity lifecycle and access reviews. Option C is wrong because Microsoft Entra Verified ID is for decentralized identity verification. Option D is wrong because Microsoft Entra Permissions Management is for managing permissions in multi-cloud environments.
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.
✗
Microsoft Entra Permissions Management
Why it's wrong here
Permissions Management is for cloud infrastructure permissions, not external identity.
✗
Microsoft Entra Verified ID
Why it's wrong here
Verified ID is for verifiable credentials, not for external authentication.
✗
Entra ID Governance
Why it's wrong here
Governance manages identity lifecycle and access reviews, not external identity providers.
✓
External ID
Why this is correct
External ID enables external collaboration with self-service sign-up and support for external identity providers.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: External ID — Option A is correct because Entra External ID (formerly Azure AD B2B) allows external users to authenticate using their own identity providers. Option B is wrong because Entra ID Governance focuses on identity lifecycle and access reviews. Option C is wrong because Microsoft Entra Verified ID is for decentralized identity verification. Option D is wrong because Microsoft Entra Permissions Management is for managing permissions in multi-cloud environments.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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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