SC-900 Practice Question: Describe the concepts of security, compliance, and identity
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 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
✓
External ID
Microsoft Entra External ID (formerly Azure AD B2B) allows external partners to access your organization's resources using their own identity providers, enabling secure collaboration without managing external identities. Option A is incorrect because Microsoft Entra Permissions Management is a cloud infrastructure entitlement management (CIEM) solution for multi-cloud permissions. Option B is incorrect because Microsoft Entra Verified ID is a verifiable credentials solution for decentralized identity verification. Option C is incorrect because Entra ID Governance focuses on identity lifecycle management, access reviews, and entitlement management.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Microsoft Entra Permissions Management
Why it's wrong here
Permissions Management governs and right-sizes cloud infrastructure entitlements across AWS, Azure and GCP; it does not broker external identities. Partner access via their own IdP requires B2B direct federation or SAML/WS-Fed configuration. Permissions Management fits least-privilege auditing of privileged cloud roles.
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Microsoft Entra Verified ID
Why it's wrong here
Verified ID issues and verifies decentralised identity credentials such as verifiable employee badges; it does not federate external partners into your tenant. B2B collaboration with SAML/WS-Fed federation is the mechanism for partner IdP sign-in. Verified ID suits proving a specific claim, not ongoing resource access.
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Entra ID Governance
Why it's wrong here
Entra ID Governance handles access reviews, entitlement management and lifecycle workflows for existing identities; it does not federate external partners' own identity providers. External identities with self-service sign-up and B2B collaboration, configured through External Identities, is the feature that lets partners authenticate with their own IdP.
- ✓
External ID
Why this is correct
External ID is the Microsoft Entra feature designed for external identities, letting partners authenticate with their own identity provider through federation or guest accounts. It satisfies the requirement for partner access using their existing credentials, rather than creating and managing separate local accounts.
Go deeper
Related to this question
Learn chapter
Cloud App Governance and App Consent
Key term
Governance
Governance is the framework of policies, processes, and controls that ensures IT activities align with business goals and comply with regulations.
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.
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JA
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.