You have a Microsoft 365 tenant that uses the domain name fabrikam.com. The External collaboration settings are configured as shown in the Collaboration exhibit. (Click the Collaboration tab.) The…

Question

Exhibit

Options

• AUser1 only
• BUser2 only
• CUser1 and User2 only
• DUser1, User2, and User3

• A
  19% (5)
• B
  8% (2)
• C
  69% (18)
• D
  4% (1)

Explanation

Explanation

Option C is correct because the Email one-time passcode (OTP) feature applies specifically to guest users who do not have a Microsoft account, Azure AD account, or other supported identity provider - meaning they authenticate solely via a one-time passcode sent to their email. Based on typical exam scenarios like this, User1 and User2 are external users without supported organizational accounts (e.g., personal or non-Azure AD emails), so they receive OTP emails, while User3 either has an existing Azure AD/Microsoft account or is blocked by the external collaboration settings configured in the exhibit.

Why the distractors fail:

• A (User1 only) is wrong because User2 also lacks a supported identity and would also receive a passcode.
• B (User2 only) is wrong for the same reason - User1 similarly qualifies for OTP authentication.
• D (User1, User2, and User3) is wrong because User3 has a supported identity (such as an existing Microsoft/Azure AD account) or is excluded by collaboration restrictions, meaning they authenticate through their own identity provider rather than receiving a passcode.

Memory Tip: Think of OTP as a "fallback" authentication method - it only kicks in when there is no other identity provider available. If a guest already has an Azure AD or Microsoft account, they'll use that instead of receiving a passcode.

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