You have a Microsoft Entra tenant named contoso.com that contains an enterprise application named App1. A contractor uses the credentials of [email protected]. You need to ensure that you can…

Question

Options

• AAdd a custom domain name to contoso.com.
• BConfigure the External collaboration settings.
• CCreate a guest user account in contoso.com.
• DAdd a WS-Fed identity provider.

• A
  11% (2)
• C
  84% (16)
• D
  5% (1)

Explanation

Explanation

Creating a guest user account (Option C) allows you to invite the contractor's existing [email protected] identity into your Entra tenant as a B2B guest, enabling them to authenticate with their own Microsoft/Outlook credentials while still being granted access to App1 - no new credentials are required.

Why the distractors are wrong:

• Option A (custom domain) is used to add your own organization's domain to Entra ID; it doesn't help external users authenticate with a personal Outlook account.
• Option B (External collaboration settings) controls policies around guest invitations (e.g., who can invite guests), but doesn't itself grant access - you still need to create the guest account.
• Option D (WS-Fed identity provider) is used to federate with external organizational identity providers, not for individual consumer/personal Microsoft accounts like outlook.com.

Memory Tip: Think of the "Guest = Keep Your Own Identity" rule - whenever an external user needs to access your tenant without changing their credentials, the answer is almost always a B2B Guest User account. If they already have a Microsoft account (like Outlook.com), no extra federation setup is needed.

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