SC-300 Microsoft Identity and Access Administrator Questions and Answers

In Azure AD Identity Governance, application access granted through Entitlement management is organized around catalogs and access packages. The SC-300 study materials explain that “a catalog is a container for resources and access packages” and that you must add your enterprise applications (or the groups tied to those apps) to a catalog before you can build access packages that users can request. Creating the catalog first enables you to place only the required resources in scope and to delegate day-to-day ownership: “catalog owners can manage the resources and access packages within their catalog without being tenant-wide admins,” satisfying the delegation requirement to use custom catalogs and least privilege. After the catalog exists, you create one or more access packages that include the application (or groups) and policies that control who can request, how they are approved, and for how long. Identity Governance then lets you track access package assignments and review who has the app over time. By contrast, programs are used to group and report on governance initiatives (for example, collections of access reviews) rather than to onboard application resources; and modifying user/admin consent settings affects app consent behavior, not the lifecycle tracking of assignments. Therefore, the correct first step to track application access assignments while meeting the delegation requirements is to create a catalog.

According to the Microsoft SC-300: Identity and Access Administrator Study Guide and the Microsoft Learn module “Monitor and respond to Azure AD events with Azure Sentinel”, multi-staged attacks are advanced threat scenarios that require correlation of multiple events — for example, a suspicious sign-in followed by abnormal Office 365 activity.

The scenario in the question states:

“Litware wants to use the Fusion rule in Azure Sentinel to detect multi-staged attacks that include a combination of suspicious Azure AD sign-ins followed by anomalous Microsoft Office 365 activity.”

Azure Sentinel’s Fusion rule is a built-in, machine-learning–driven correlation rule that automatically detects multi-stage attacks by analyzing anomalies across multiple data sources such as Azure AD sign-in logs, Office 365 activity, and security alerts.

However, to fine-tune detection or meet specific organizational monitoring requirements, administrators can customize the rule logic in Sentinel analytics. This allows you to define how different signals and events are correlated, what thresholds trigger an alert, and how Sentinel interprets combined anomalies.

Microsoft documentation states:

“Fusion uses correlation logic in analytics rules to detect complex multi-stage attacks. Administrators can customize rule logic to meet specific detection requirements and fine-tune alert sensitivity.”

The other options do not meet the requirement:

B. Create a workbook → Used for visualization and reporting, not detection.

C. Add data connectors → Used to ingest data sources; this is already configured.

D. Add a playbook → Used for automated response, not for detection logic configuration.

✅ Correct Answer: A. Customize the Azure Sentinel rule logic

According to the Microsoft Identity and Access Administrator (SC-300) Exam Ref and the Azure AD Dynamic Membership Rules documentation, when you create a dynamic group in Azure Active Directory (now Entra ID), you define rules that automatically add or remove users based on their attributes.

The scenario requires a group named LWGroup1 that contains all Azure AD user accounts for Litware but excludes all guest accounts. In Azure AD, internal users created within the tenant are designated with the attribute user.userType = "Member", while external or guest accounts from partner organizations have user.userType = "Guest".

To ensure only internal (Litware) users are included, the membership rule must:

Ensure the user object exists — by checking (user.objectId -ne null) which confirms that the rule only applies to valid user objects.

Include only members, excluding guests — by filtering with (user.userType -eq "Member").

Hence, the dynamic rule that satisfies these conditions is:

(user.objectId -ne null) and (user.userType -eq "Member")

This rule guarantees that LWGroup1 dynamically includes all internal users from litware.com and excludes all external users or guest accounts (such as Fabrikam users).

This logic aligns precisely with the Microsoft Learn module “Manage groups in Azure Active Directory” and SC-300 study guide section “Implement and manage dynamic membership rules”, which states:

“Use user.userType to distinguish between internal members and external guests when configuring membership rules for dynamic groups.”

✅ Correct Answer:

(user.objectId -ne null) and (user.userType -eq "Member")

According to the Microsoft SC-300: Identity and Access Administrator Study Guide and Microsoft Learn modules “Implement and manage Azure AD roles” and “Implement Privileged Identity Management (PIM)”, there is a clear distinction between Azure AD built-in roles and Azure (resource-based) built-in roles.

Azure AD built-in roles govern directory-level access — such as managing users, groups, enterprise apps, or security settings in Azure Active Directory (Entra ID).The Privileged Role Administrator role allows the user to manage role assignments for directory roles in Azure AD, including activating roles through PIM.The Global Administrator also has this capability, but the Privileged Role Administrator is the least privilege role that meets the delegation requirement — aligning with the principle of least privilege stated in the scenario.As the documentation notes:

“Privileged Role Administrator manages role assignments in Azure AD, including the ability to activate and assign roles through Azure AD Privileged Identity Management.”

Azure built-in roles, on the other hand, are used to control access at the Azure resource level — for subscriptions, resource groups, and individual resources.The role responsible for managing these assignments is the User Access Administrator.This role can grant or revoke access to Azure resources by managing role assignments within Azure RBAC (Role-Based Access Control).The Microsoft documentation states:

“User Access Administrator allows management of user access to Azure resources. It can assign roles in Azure RBAC for resources, subscriptions, and management groups.”

Therefore:

✅ To manage Azure AD built-in role assignments → Privileged role administrator

✅ To manage Azure built-in role assignments → User access administrator

This approach satisfies the delegation requirement mentioned in the scenario by assigning the least-privileged roles necessary for each type of role management task.

SC-300 emphasizes using Conditional Access with named locations to scope MFA—especially to exclude trusted corporate egress IPs. The materials state that administrators can define named locations by public IP ranges and “mark them as trusted” for policy exceptions. This aligns with the requirement: enforce MFA for all users, but exempt users authenticating from the Boston office. Because Azure AD evaluates the client’s public egress address, private RFC1918 ranges are never seen by Azure AD on the internet, so defining private IP ranges would not work. Likewise, the legacy “Trusted IPs” setting belongs to the old per-user MFA service settings; SC-300 guidance prefers Conditional Access named locations for modern MFA deployments and for combining with other conditions (apps, platforms, user risk, locations). Implementing the Boston office as a named location using its public egress IP range(s), and marking it trusted, lets you exclude that location from the tenant-wide MFA policy while still meeting the broader requirement to enforce MFA for everyone else and for on-prem apps published via Azure AD Application Proxy. In short: define Boston’s public IP as a named location and use it in your Conditional Access policy exclusion to satisfy the exemption precisely and securely.

Answer is

This question asks you to apply the stated Technical Requirements for Self-Service Password Reset (SSPR) to complete the form. The specific scenario about "User3" is a distraction, as the configuration applies to all users.

The relevant technical requirements are:

"Users must provide one authentication method to reset their password by using SSPR."

This directly dictates the value for the Number of authentication methods required, which is 1.

"Available methods must include: Email, Phone, Security questions, The Microsoft Authenticator app"

This lists all the options that are configured to be available for SSPR, which determines the value for Authentication methods that can be used: Email,Phone,Security questions,The Microsoft Authenticator app.

SC-300 materials stress that to enforce modern controls (like MFA) on on-premises apps, you must front them with Azure AD so Conditional Access can evaluate sign-ins. The documentation states that Azure AD Application Proxy “provides secure remote access to on-premises applications” and that apps published through it can have “Conditional Access policies, including multifactor authentication” applied at sign-in. In other words, once the legacy app is published by Application Proxy, Azure AD sits in the path, enabling you to meet the requirement to enforce MFA when accessing on-premises applications and to combine it with your location-based exemptions.

For SharePoint Online restrictions, SC-300 points to Microsoft Cloud App Security (Defender for Cloud Apps) for real-time governance: you can create session policies that “control and limit activities in real time” and, for SharePoint Online and other Microsoft 365 apps, “monitor user sessions and block download, cut, copy, and print” when conditions (device state, risk, or location) warrant it. Since the scenario already has anomaly detections enabled, configuring Cloud App Security policies aligns directly with the requirement to place access restrictions on SharePoint Online without altering tenant-wide consent settings. Thus, publish on-prem apps with Application Proxy to bring them under Conditional Access (for MFA), and use Cloud App Security policies to enforce SharePoint Online session and download controls.

To assign a Windows 10/11 Enterprise E3 license to the Sg-Retail group, you can follow these steps:

Sign in to the Microsoft Entra admin center:

Make sure you have the role of Global Administrator or License Administrator.

Navigate to the licensing page:

Go toBilling>Licenses1.

Find the Windows 10/11 Enterprise E3 license:

Look for the Windows 10/11 Enterprise E3 license in the list of available products.

Assign licenses to the group:

Select the license and then choose Assign licenses.

Search for and select the Sg-Retail group.

Confirm the assignment and make sure that the correct number of licenses is available for the group.

Review and confirm the assignment:

Ensure that the licenses have been properly assigned to the Sg-Retail group without affecting other groups or users.

Monitor the license status:

Check the license usage and status to ensure that the Sg-Retail group members can utilize the Windows 10/11 Enterprise E3 features.

By following these steps, the Sg-Retail group should now have the Windows 10/11 Enterprise E3 licenses assigned to them.

To implement additional security checks for the Sg-Executive group members before they canaccess any company apps, you can use Conditional Access policies in Microsoft Entra. Here’s a step-by-step guide:

Sign in to the Microsoft Entra admin center:

Ensure you have the role of Global Administrator or Security Administrator.

Navigate to Conditional Access:

Go to Security > Conditional Access.

Create a new policy:

Select + New policy.

Name the policy appropriately, such as “Sg-Executive Security Checks”.

Assign the policy to the Sg-Executive group:

Under Assignments, select Users and groups.

Choose Select users and groups and then Groups.

Search for and select the Sg-Executive group.

Define the application control conditions:

Under Cloud apps or actions, select All cloud apps to apply the policy to any company app.

Set the device compliance requirement:

Under Conditions > Device state, configure the policy to include devices marked as compliant by Microsoft Intune.

Set the app protection policy requirement:

Under Conditions > Client apps, configure the policy to include client apps that are protected by app protection policies.

Configure the access controls:

Under Access controls > Grant, select Grant access.

Choose Require device to be marked as compliant and Require approved client app.

Ensure that the option Require one of the selected controls is enabled.

Enable the policy:

Set Enable policy to On.

Review and save the policy:

Review all settings to ensure they meet the requirements.

Click Create to save and implement the policy.

By following these steps, you will ensure that the Sg-Executive group members can only access company apps if they meet one of the specified conditions, either by using a compliant device or a protected client app. This enhances the security posture of your organization by enforcing stricter access controls for executive-level users.

To deploy Multi-Factor Authentication (MFA) for only the members of the Sg-Finance group, excluding Debra Berger, and without using a Conditional Access policy, you can follow these steps:

Open the Microsoft Entra admin center:

Sign in as a Security Administrator or Global Administrator.

Navigate to MFA settings:

Go to Users > Active users.

On the Active users page, select Multi-factor authentication.

Manage user settings:

Find and select the Sg-Finance group.

Enable MFA for this group by setting the requirement status to Enabled.

Exclude a user from MFA:

In the Multi-factor authentication page, search for Debra Berger.

Set her MFA status to Disabled to exclude her from MFA registration.

Verify the configuration:

Ensure that all members of the Sg-Finance group have MFA enabled except for Debra Berger.

Communicate the change:

Inform the Sg-Finance group members about the MFA requirement and provide instructions on how to register for MFA.

Monitor the setup:

Check the sign-in logs to confirm that MFA is being prompted for the Sg-Finance group members and not for Debra Berger.

In the SC-300 coverage of Azure AD Connect and Identity Governance, Microsoft explains that to surface a custom on-premises attribute in Azure AD you must enable Directory extensions in Azure AD Connect. The guide states that “Directory extensions lets you synchronize additional attributes from on-premises Active Directory to Azure AD so they are available in the cloud directory for apps and policy.” This is the supported way to bring a custom attribute (here, LWLicenses) from the litware.com forest into Azure AD so it can be referenced by cloud features such as dynamic group rules. Domain filtering or optional features do not expose a new attribute to Azure AD; directory extensions does.

For license automation, the SC-300 materials on group-based licensing and dynamic groups emphasize that “licenses can be assigned to Azure AD groups; group members then inherit the licenses, and when membership changes, licenses are added or removed automatically.” They further note that “dynamic user groups evaluate rules against user attributes to add or remove users without manual effort,” and that “nested groups are not supported for license inheritance—only direct members receive licenses.” Using the synced LWLicenses attribute in a Dynamic User group rule (for example, user.extensionAttribute… -eq "E5") ensures users are automatically added to the correct group and therefore receive the specified licenses without administrative intervention, fully meeting Litware’s requirement to “manage the assignment of Azure AD licenses by modifying the value of the LWLicenses attribute.”

To implement a process for reviewing guest users’ access to the Salesforce app with the specified requirements, you can use Microsoft Entra’s Identity Governance access reviews feature. Here’s a step-by-step guide:

Assign the appropriate role:

Ensure you have one of the following roles: Global Administrator, User Administrator, or Identity Governance Administrator1.

Navigate to Identity Governance:

Sign in to the Microsoft Entra admin center.

Go toIdentity governance>Access reviews1.

Create a new access review:

Select New access review.

Choose the Salesforce app to review guest user access1.

Configure the review settings:

Set the frequency of the review to monthly.

Define thedurationof the review period to5 days1.

Determine the reviewers:

Assign the manager of each guest user as the reviewer.

If a guest user does not have a manager, assignMegan Bowenas the reviewer1.

Automate the removal process:

Configure settings toautomatically remove accessif the review is not completed within the specified time frame1.

Monitor and enforce compliance:

Regularly check the access review results to ensure compliance with the review policy1.

Communicate the process:

Inform all stakeholders about the new review process and provide guidance on how to complete the reviews.

By following these steps, you can ensure that guest users’ access to the Salesforce app is reviewed monthly, with managers being responsible for the review, and access is removed if the review is not completed in time.

To prevent all users from using legacy authentication protocols when authenticating to Microsoft Entra ID, you can create a Conditional Access policy that blocks legacy authentication. Here’s how to do it:

Sign in to the Microsoft Entra admin center:

Ensure you have the role of Global Administrator or Conditional Access Administrator.

Navigate to Conditional Access:

Go to Security > Conditional Access.

Create a new policy:

Select + New policy.

Give your policy a name that reflects its purpose, like “Block Legacy Auth”.

Set users and groups:

Under Assignments, select Users or workload identities.

Under Include, select All users.

Under Exclude, select Users and groups and choose any accounts that must maintain the ability to use legacy authentication.It’s recommended to exclude at least one account to prevent lockout1.

Target resources:

Under Cloud apps or actions, select All cloud apps.

Set conditions:

Under Conditions > Client apps, set Configure to Yes.

Check only the boxes for Exchange ActiveSync clients and Other clients.

Configure access controls:

Under Access controls > Grant, select Block access.

Enable policy:

Confirm your settings and set Enable policy to Report-only initially to understand the impact.

After confirming the settings using report-only mode, you can move theEnable policytoggle fromReport-onlytoOn2.

By following these steps, you will block legacy authentication protocols for all users, enhancing the security posture of your organization by requiring modern authentication methods. Remember to monitor the impact of this policy and adjust as necessary to ensure business continuity.

To configure the account lockout settings so that accounts are locked out for five minutes after 10 failed sign-in attempts, you can follow these steps:

Open the Microsoft Entra admin center:

Sign in with an account that has the Security Administrator or Global Administrator role.

Navigate to the lockout settings:

Go to Security > Authentication methods > Password protection.

Adjust the Smart Lockout settings:

Set the Lockout threshold to 10 failed sign-in attempts.

Set the Lockout duration (in minutes) to 5.

Please note that by default, smart lockout locks an account from sign-in after 10 failed attempts in Azure Public and Microsoft Azure operated by 21Vianet tenants1. The lockout period is one minute at first, and longer in subsequent attempts.However, you can customize these settings tomeet your organization’s requirements if you have Microsoft Entra ID P1 or higher licenses for your users1.

To add the LinkedIn application as a resource to the Sales and Marketing access package without removing any other resources, you can follow these steps:

Sign in to the Microsoft Entra admin center:

Ensure you have the role of Global Administrator or Identity Governance Administrator.

Navigate to Entitlement Management:

Go to Identity governance > Entitlement management > Access packages1.

Select the Sales and Marketing access package:

Find and select the Sales and Marketing access package to modify it.

Add a new resource:

Within the access package details, select Resources.

Click on + Add resource.

Search for and select the LinkedIn application from the list of available resources.

Configure the resource role:

Assign the appropriate role for the LinkedIn application that users in the Sales and Marketing access package will have.

Review and update the access package:

Ensure that the LinkedIn application has been added as a resource.

Confirm that no other resources have been removed from the access package.

Save the changes:

After reviewing, save the changes to the access package.

Communicate the update:

Notify the relevant users about the addition of the LinkedIn application to their access package.

By following these steps, you will successfully add the LinkedIn application to the Sales and Marketing access package without affecting the other resources.

To ensure that users in the Sg-Operations group see a tab named “Operations” containing only LinkedIn and Box applications in the My Apps portal, you can create a collection with these specific applications. Here’s how to do it:

Sign in to the Microsoft Entra admin center:

Make sure you have one of the following roles: Global Administrator, Cloud Application Administrator, Application Administrator, or owner of the service principal.

Navigate to App launchers:

Go to Identity > Applications > Enterprise applications.

Under Manage, select App launchers.

Create a new collection:

Click on New collection.

Enter “Operations” as the Name for the collection.

Provide a Description if necessary.

Add applications to the collection:

Select the Applications tab within the new collection.

Click on + Add application.

Search for and select LinkedIn and Box applications.

Click Add to include them in the collection.

Assign the collection to the Sg-Operations group:

Select the Users and groups tab.

Click on + Add users and groups.

Search for and select the Sg-Operations group.

Click Select to assign the collection to the group.

Review and create the collection:

Select Review + Create to check the configuration.

If everything is correct, click Create to finalize the collection.

By following these steps, when users in the Sg-Operations group visit the My Apps portal, they will see a new tab named “Operations” that contains only the LinkedIn and Box applications1.

Please note that to create collections on the My Apps portal, you need a Microsoft Entra ID P1 or P2 license1.

To create a group named “Audit” and ensure that its members can activate the Security Reader role, follow these steps:

Open the Microsoft Entra admin center:

Sign in with an account that has the Security Administrator or Global Administrator role.

Navigate to Groups:

Go toTeams & groups>Active teams and groups1.

Create the security group:

Select Add a security group.

On the Set up the basics page, enter “Audit” as the group name.

Add a description if necessary and chooseNext1.

Edit settings:

On theEdit settingspage, select whether you want Microsoft Entra roles to be assignable to this group and selectNext1.

Assign roles:

After creating the group, go to Roles > All roles.

Find and select the Security Reader role.

Under Assignments, choose Assign.

Select the “Audit” group to assign the role to its members2.

Review and finish:

Review the settings to ensure the “Audit” group is created with the ability for its members to activate the Security Reader role.

Finish the setup and save the changes.

By following these steps, you will have created the “Audit” group and enabled its members to activate the Security Reader role, which allows them to view security-related information without having permissions to change it. Remember to communicate the new group and role assignment to the relevant stakeholders in your organization.

Statement

Answer

1. Before Admin1 can perform a task that requires the User Administrator role, an approver must approve the activation request.

Yes

2. Admin2 can request activation of the User Administrator role for a period of two hours.

No

3. If Admin3 connects to the Azure Active Directory admin center, and then activates the User Administrator role, Admin3 will be prompted to authenticate by using multi-factor authentication (MFA) twice.

Based on Microsoft’s SC-300 Identity and Access Administrator Study Guide, Microsoft Learn module “Manage Azure AD roles by using Privileged Identity Management (PIM)”, and Exam Ref SC-300, the following logic applies:

Approval requirement (Admin1) — In the Role setting details image, Require approval to activate is set to Yes, and one approver is listed. This means before any user (e.g., Admin1) can activate the User Administrator role, approval must be granted. Therefore, Admin1 must have the activation request approved before performing any User Administrator tasks. ✅ (Yes)

Activation duration (Admin2) — The configuration shows Activation maximum duration (hours): 8 hours. This defines the maximum allowed time a user can remain active after role activation. Admin2 can activate for up to 8 hours, not 2 hours unless specifically limited during activation. Hence, the statement claiming Admin2 can activate for “two hours” is incorrect. ❌ (No)

MFA enforcement (Admin3) — Two relevant controls exist:

Conditional Access policy requiring MFA for all users.

PIM role setting On activation, require Azure MFA = Yes.

According to Microsoft documentation, when both Conditional Access and PIM MFA enforcement apply, Azure AD intelligently avoids redundant prompts by honoring a single valid MFA session token. This means Admin3 would only be prompted once for MFA, even though both mechanisms require it. ❌ (No)

Therefore, as verified by official Microsoft materials and SC-300 documentation:

When registering an application in Azure Active Directory (Azure AD) for authentication, one of the key configuration items is the redirect URI. According to Microsoft Identity Platform Documentation and the SC-300 official study guide, the redirect URI (or reply URL) specifies where Azure AD should send the authorization code or access token after a successful sign-in.

The guide explains:

“During app registration, Azure AD requires a redirect URI to identify where authentication responses are sent. For web apps, this must be a valid HTTPS endpoint where your app listens for responses from the Azure AD authorization endpoint.”

In contrast:

The executable name, bundle ID, and package name are identifiers relevant to desktop or mobile app packaging and are not part of Azure AD web app registration configuration.

Only the redirect URI ensures proper return of authentication tokens in OAuth 2.0 and OpenID Connect flows.

Thus, when registering a .NET web app (App1) for Azure AD authentication, you must configure the redirect URI to handle token responses securely.

To ensure that all users can consent to apps that require permission to read their user profile and prevent them from consenting to apps that require any other permissions, you can configure the user consent settings in the Microsoft Entra admin center. Here’s how you can do it:

Sign in as a Global Administrator:

Access the Microsoft Entra admin center with Global Administrator privileges.

Navigate to user consent settings:

Go toIdentity>Applications>Enterprise applications>Consent and permissions>User consent settings1.

Configure the consent settings:

Under User consent for applications, select the option that allows users to consent to apps that only require permission to read their user profile.

Ensure that all other permissions are set to require administrator consent, thus preventing users from consenting to apps that require additional permissions1.

Save the settings:

After configuring the consent settings, select Save to apply the changes.

By following these steps, you will have configured the system to allow user consent for apps that need to read the user profile while blocking consent for apps that require additional permissions. This setup helps maintain user autonomy where appropriate while safeguarding against unauthorized access to broader permissions.

Azure RBAC roles on a scope (subscription, resource group, resource) can be assigned to Azure AD security principals: users, groups, and service principals (which includes enterprise applications and managed identities). The SC-300 content states: “RBAC roles can be assigned to users, groups, and applications (service principals), including system-assigned managed identities created for Azure resources.” In the table, User1 (user), Group1 (security group), VM1 (a VM with system-assigned managed identity), and App1 (an enterprise application service principal) are all valid principals. Therefore, all four can be assigned the Contributor role at the RG1 scope. This enables least-privilege delegation to workloads (VM1/App1) and to people (User1/Group1) without granting broader directory roles.

The SC-300 materials on Dynamic membership rules for groups specify that user attributes can be evaluated with comparison operators such as -eq, -ne, -match, -notIn, etc. For attributes that may be unset, the documentation explains that you can compare the attribute to the literal null to target users with no value. The guide’s rule syntax section states that for string attributes like user.department, “to include users where an attribute has no value, compare the attribute to null (for example, (user.department -eq null)).” It further clarifies that quoted strings (for example, "null") are treated as the literal word null, not as the absence of a value, and that $null is not used in Azure AD dynamic rule syntax. Because the requirement is to include all users that do not have a department defined, the correct expression is to select users where the department attribute is empty/unset, which is achieved with the equals operator against null. Therefore, the completed rule is (user.department -eq null), which adds only those users whose profile has no Department value.

<  [answer choice] can access App1 from the homepage URL: → Only users listed on the Users and groups blade

 App1 will appear in the Microsoft Office 365 app launcher for [answer choice]: → Only users listed on the Users and groups blade

According to Microsoft’s official documentation and the SC-300: Microsoft Identity and Access Administrator study guide, when you register and configure an enterprise application in Azure Active Directory, two specific settings directly influence user visibility and access:

User assignment required?

If this option is set to Yes, Azure AD requires users to be explicitly assigned to the app before they can sign in.

Only users or groups listed on the Users and groups blade (app assignments) will have access.

This means that even if the application is visible in Azure AD, users not assigned to it cannot authenticate or launch it.

Visible to users?

If set to Yes, the app appears in the Microsoft 365 app launcher (also known as the My Apps portal).

However, when “User assignment required” is Yes, the visibility is limited only to those who are assigned to the app.

From the exhibit:

“User assignment required?” = Yes

“Visible to users?” = Yes

This configuration implies:

Only assigned users (those listed on the Users and groups blade) can sign in to App1 via the homepage URL.

App1 will appear in the Microsoft 365 app launcher (My Apps portal) only for those same assigned users.

As per Microsoft Learn documentation (“Manage enterprise apps in Azure AD”):

“When User assignment required is set to Yes, only users assigned to the application can access it. If Visible to users is also Yes, the application will appear in My Apps for those assigned users.”

According to the Microsoft Identity and Access Administrator (SC-300) Official Study Guide and Microsoft Entra documentation, role assignments in Entra ID (formerly Azure AD) can be scoped at directory (tenant-wide) or administrative unit (AU) levels.

An Administrative Unit (AU) is a logical grouping of Azure AD resources (users, groups, devices) that allows administrators to delegate management responsibilities. When you assign roles scoped to an AU, the permissions of the role apply only to objects within that AU.

From Microsoft’s “Manage role-based access control (RBAC) with administrative units” module:

“You can assign directory roles to users either at the tenant level or scoped to an administrative unit. Only users who are members of the AU can be assigned roles scoped to that AU.”

Applying this to the scenario:

User1 is a member of AU1. Therefore, User1 is eligible for a role assignment scoped to AU1 and/or tenant-wide (contoso.com). User1 can have the Security Administrator role assigned at both AU1 and contoso.com.

User2 is not a member of AU1. Users who are not members of an administrative unit cannot be assigned roles scoped to that AU. Thus, User2’s User Administrator role can be assigned only at the tenant-wide (contoso.com) level.

This aligns with the Microsoft Learn reference:

“Only members of an administrative unit can be assigned directory roles scoped to that administrative unit. Roles can always be assigned at the organization level regardless of AU membership.”

This scenario is based on the Microsoft Entra (Azure AD) Identity Protection feature, which is a major topic in the SC-300: Microsoft Identity and Access Administrator exam. According to the official study guide and Microsoft documentation:

“A user risk policy in Microsoft Entra ID is used to detect when a user account is at risk and to enforce remediation actions, such as requiring the user to change their password on the next sign-in.”

Assignments:

Include: Group1

Exclude: Group2

Sign-in risk: Medium and above

Access control: Require password change

User

Group Membership

Risk Level

User1

Group1

High

User2

Group2

Medium

User3

Group1, Group2

High

User1:

Included in Group1 (policy applies).

Not a member of Group2 (not excluded).

Risk level = High, which is ≥ Medium, meeting policy threshold.✅ User1 must change their password.

User2:

Member of Group2 (excluded).

Even though their risk level is Medium, exclusion overrides inclusion.❌ User2 will not be prompted to change their password.

User3:

Member of both Group1 (included) and Group2 (excluded).

Exclusion always takes precedence in Microsoft Entra conditional access and risk policies.❌ User3 will not be required to change their password.

From the Microsoft Identity and Access Administrator Study Guide (Exam Ref SC-300) and Microsoft Learn (“Configure and manage user risk policies”):

“When a user is included in both the include and exclude assignments of a policy, the exclude setting takes precedence. Risk policies can enforce password change for users with detected risk levels that meet or exceed the configured threshold.”

According to the official Microsoft Identity and Access Administrator (SC-300) Study Guide and Microsoft Learn documentation (“Manage External Identities in Microsoft Entra ID”), External Identities in Microsoft Entra ID allow organizations to collaborate securely with users outside the organization using features like B2B collaboration and B2C self-service sign-up.

Let’s analyze the two required configurations:

B2B Collaboration:The External collaboration settings page is where administrators configure how external users (guests) interact with internal resources. This includes settings for guest user invitations, collaboration restrictions, redemption policies, and access permissions for B2B users. Microsoft documentation clearly states:

“Use External collaboration settings to manage the behavior and restrictions of B2B collaboration users in your directory.”

Therefore, to enable or adjust B2B collaboration, you must configure External collaboration settings.

Monthly Active Users (MAU)-based pricing:Microsoft Entra External Identities pricing is based on Monthly Active Users (MAU), which must be linked to an Azure subscription for billing purposes. This configuration is found under Linked subscriptions. Microsoft’s documentation explains:

“To enable MAU-based billing for your External Identities, you must link your Microsoft Entra tenant to an Azure subscription under the ‘Linked subscriptions’ option.”

Linking the subscription allows Microsoft to bill based on the number of active external users each month, aligning with the MAU pricing model.

Therefore:

B2B collaboration → External collaboration settings

MAU-based pricing → Linked subscriptions

Tenant Restrictions in Microsoft 365 are designed to prevent users from accessing external tenants while allowing access to approved tenants. According to the SC-300 exam material and Microsoft’s Tenant Restrictions documentation, only modern authentication–capable clients (OAuth 2.0) can enforce tenant restrictions.

Outlook 2013 by default uses basic authentication, which does not support tenant restrictions. Outlook 2016 (and later versions) use modern authentication, making them compatible.

Microsoft Documentation: “Tenant restrictions require modern authentication to enforce access control. Legacy clients like Outlook 2013 must be upgraded to Outlook 2016 or newer.”

User

Portal to Use

User1

Azure Active Directory admin center

User2

Microsoft 365 compliance center

User3

Microsoft Endpoint Manager admin center

This question tests your knowledge of Microsoft 365 administrative roles and their associated management portals, as defined in the Microsoft Identity and Access Administrator (SC-300) Exam Study Guide and Microsoft Learn’s “Manage identity and access in Microsoft Entra ID and Microsoft 365” module.

Let’s analyze each user and the roles assigned:

Roles:

User Administrator

Device Administrator

Identity Governance Administrator

These are all Azure AD-based roles.

The User Administrator role allows the management of users, groups, and password resets in Azure AD.

The Device Administrator role applies to Azure AD joined devices.

The Identity Governance Administrator manages Access Reviews, Entitlement Management, and Terms of Use, all of which are under Azure AD Identity Governance.

According to Microsoft documentation:

“User, Device, and Identity Governance Administrators perform their management tasks in the Azure Active Directory admin center.”

Portal: Azure Active Directory admin center

Roles:

Records Management

Quarantine Administrator

These are Microsoft Purview compliance roles, used for managing retention policies, data lifecycle management, and quarantine of messages/files.

Both are managed through the Microsoft 365 compliance center (previously known as the Security & Compliance Center). Microsoft documentation:

“Records Management and Quarantine Administrator roles allow access to compliance features such as data retention, auditing, and message quarantine, all of which are configured from the Microsoft 365 compliance center.”

Portal: Microsoft 365 compliance center

Roles:

Endpoint Security Manager

Intune Role Administrator

These roles are directly tied to Microsoft Endpoint Manager (Intune).

The Endpoint Security Manager configures device compliance, security baselines, and endpoint protection.

The Intune Role Administrator manages Intune roles and permissions.

Microsoft documentation:

“Administrators managing Intune roles and endpoint security policies use the Microsoft Endpoint Manager admin center (https://endpoint.microsoft.com).”

Portal: Microsoft Endpoint Manager admin center

According to the Microsoft Identity and Access Administrator (SC-300) official study guide and Microsoft Learn module “Implement and manage user risk policies”, the scenario where “users must be forced to change their password if there is a probability that their identity was compromised” directly maps to the Azure AD Identity Protection “User risk policy.”

In Azure AD Identity Protection, user risk represents the likelihood that an account’s credentials have been compromised. When Azure AD detects a high user risk (for example, leaked credentials, atypical sign-in behavior, or sign-ins from unfamiliar locations), the User Risk Policy can be configured to automatically block access or require the user to reset their password upon the next sign-in.

Before a user can reset their password or complete remediation, they must have a registered authentication method (for password reset and MFA). Therefore, users must first register for multi-factor authentication (MFA) — this registration enables the authentication methods (like phone number or authenticator app) that are also used during password reset verification.

The SC-300 documentation specifically highlights:

“To enforce a password change when a user’s identity risk is high, the user must be registered for MFA, and a user risk policy must be configured to require password change.”

Thus, the correct configuration is:

Users must first register for MFA — to ensure they have verified methods available.

Configure a user risk policy — to automatically trigger password reset upon detection of compromised credentials.

Correct Answers:

Users must first: Register for multi-factor authentication (MFA).

You must configure: A user risk policy.

The SC-300 coverage of Azure AD Connect explains that when you need to bring in a new set of on-premises users or change what is synchronized (for example, adding an additional domain/OU such as ADatum or adjusting filtering), you reopen the Azure AD Connect wizard and choose “Customize synchronization options.” The guide notes that this path lets you “modify directory/OU filtering, add or remove forests, and enable optional sync features” so that only the intended users are synchronized. It contrasts with operational commands: Start-ADSyncSyncCycle merely triggers an immediate delta/full sync of the current configuration; Set-ADSyncScheduler changes the sync cadence or pause/resume behavior; and “Change user sign-in” alters the authentication method (e.g., PHS vs. PTA) but does not control scoping of which users are synced. To meet a requirement to sync the ADatum users according to technical constraints (such as OU/domain selection or feature toggles), you must first configure the scope by running the wizard and selecting Customize synchronization options, then perform/allow a sync cycle to bring those users into Azure AD as defined.

As per the Microsoft SC-300: Identity and Access Administrator official study materials and Microsoft Learn documentation on “Manage administrative units in Azure Active Directory”, Administrative Units (AUs) are designed to delegate administrative permissions within large organizations based on divisions such as geography or department. They provide scoped administrative control—allowing helpdesk or user administrators to manage users only within a specific subset of the directory, such as a branch office or department.

In this scenario, Contoso’s technical requirement states:

“The helpdesk administrators must be able to manage licenses for only the users in their respective office.”

To fulfill this, you must create an administrative unit for each branch office (e.g., Montreal, London, Seattle) and assign helpdesk administrators scoped to those AUs. This ensures that each helpdesk admin can only manage licenses for the users within their respective office, enforcing the principle of least privilege.

The Azure Active Directory admin center is the correct tool for creating and managing administrative units. SC-300 guidance clarifies that administrative units are Azure AD objects, not on-premises Active Directory objects like Organizational Units (OUs). Therefore, they are created and managed exclusively through the Azure portal, Microsoft Graph, or PowerShell for Azure AD, but the most straightforward interface for exam purposes is the Azure AD admin center.

 The users must first: Register for multi-factor authentication (MFA)

 You must configure: A user risk policy

According to Microsoft SC-300 official learning materials and Exam Ref SC-300: Microsoft Identity and Access Administrator, when the requirement is to address the probability that user identities were compromised, the appropriate feature is Azure AD Identity Protection. Identity Protection detects risky sign-ins and risky users through continuous analysis of login behavior, location, device, and credential exposure signals.

Two types of policies can be created:

Sign-in risk policy – Triggers actions based on suspicious sign-in behavior (for example, unfamiliar location).

User risk policy – Triggers actions when the user’s overall identity is deemed at risk (for example, compromised credentials).

The documentation specifies:

“When user risk is detected, the policy can require the user to change their password to remediate the risk. Users must first be registered for MFA to perform secure password change operations.”

Therefore, before the user risk policy can be enforced, users must be enrolled in multi-factor authentication (MFA). MFA is used during the remediation step (password change) to verify the user’s identity securely.

Thus, to meet the requirement for “the probability that user identities were compromised,” you configure a user risk policy in Azure AD Identity Protection, and ensure that users first register for MFA so that they can complete password change or verification flows when risks are detected.

In Azure AD Privileged Identity Management (PIM) for Azure AD roles, the exam materials describe that you tailor how a role (for example, User administrator) is used by editing its Role settings. These settings control activation behavior, including require multi-factor authentication, justification, approval, assignment/activation durations, and notifications. The guide states that administrators can “configure activation requirements and time-bound eligibility on a per-role basis” and “enforce approval workflows and MFA at activation.” Access reviews are used to periodically verify who still needs a role, but they do not implement the operational changes to how the role is activated. Active assignments simply shows and changes who currently holds active/eligible assignments; it does not set policy for the role’s activation behavior. Administrative units scope certain directory tasks, but they are not how you change PIM activation/approval/MFA requirements. Therefore, to meet planned changes for the User administrator role (such as least privilege activation with approval, justification, and MFA), you update PIM → Azure AD roles → User administrator → Role settings. This aligns with the SC-300 objective to “configure PIM settings and policies for Azure AD roles,” ensuring governance by policy rather than ad-hoc assignment.

In Azure AD, license automation is implemented through group-based licensing. The SC-300 materials explain that “you can assign licenses to a group in Azure Active Directory; when you assign a license to a group, all users who are members of the group are assigned that license”. They also clarify that “dynamic group membership uses rules to automatically add or remove users based on user attributes”, which is the recommended way to on-board new populations without manual effort. For licensing, the guide is explicit that “group-based licensing works with security groups and Microsoft 365 Groups” and that “distribution lists are not supported for license assignment”. Administrative Units are described as “a scoping mechanism for delegating administrative permissions to subsets of users and devices”, not a licensing entity. Likewise, Organizational Units (OUs) are on-premises AD containers and “do not control license assignment in Azure AD”.

Given the requirement to allocate licenses automatically to new A. Datum users as they appear, the least-effort, policy-driven approach is to create an Azure AD Dynamic User security group with a membership rule that targets those users (for example, by domain, company attribute, or a synced attribute), then assign the required Microsoft 365/Azure AD licenses to that group. As the documentation notes, “when users join or leave the group based on the rule, licenses are added or removed automatically.”

According to the Microsoft SC-300: Identity and Access Administrator official study guide and the Microsoft Learn module “Manage user and group licenses in Microsoft Entra ID (Azure AD)”, when you need to automatically assign licenses to users based on specific attributes (such as department, location, or a custom attribute like LWLicenses), you should use a Dynamic User Security Group in Azure Active Directory (Entra ID).

In the scenario, Litware wants to:

“Manage the assignment of Azure AD licenses by modifying the value of the LWLicenses attribute. Users who have the appropriate value for LWLicenses must be added automatically to the Microsoft 365 group that has the appropriate license assigned.”

This requirement directly maps to a Dynamic User security group, which supports dynamic membership rules that automatically include users when their attributes meet defined conditions (for example, user.extensionAttribute15 -eq "E5"). When a license is assigned to this dynamic group, Azure AD automatically provisions or removes licenses for members based on their attribute values — eliminating manual license management.

Per Microsoft documentation:

“You can assign licenses to a group that has dynamic membership. When a user’s attributes change, Azure AD automatically adds or removes them from the group, which updates their license assignments accordingly.”

Now, analyzing the other options:

B. An OU (Organizational Unit): Used in on-premises Active Directory, not Azure AD. It cannot manage cloud-based license assignments.

C. A Distribution Group: Used for email distribution in Exchange Online; cannot be used for license assignment.

D. An Administrative Unit: Used for scoping administrative permissions, not for license assignment.

Therefore, the only object type that satisfies both the technical and automation requirements is a Dynamic User Security Group.

✅ Correct Answer: A. A Dynamic User security group

To meet auditing and monitoring requirements, Azure AD must send sign-in logs and audit logs to an external location such as a Log Analytics workspace, Azure Storage account, or Event Hub. This is configured using Diagnostics settings in Azure AD.

According to Microsoft documentation in “Monitor Azure Active Directory activity logs in Azure Monitor” and the SC-300 learning objective “Implement and monitor identity governance”, you must enable diagnostic settings to stream directory logs to a Log Analytics workspace.

The scenario specifies:

“You create a Log Analytics workspace. You need to implement the technical requirements for auditing.”

By configuring Azure AD’s Diagnostics settings, you can:

Send Sign-in logs, Audit logs, and Provisioning logs to Log Analytics.

Correlate identity events with security insights in Azure Sentinel or Microsoft Defender for Cloud Apps.

Microsoft documentation confirms:

“To collect and analyze Azure AD sign-in and audit data, configure diagnostic settings to send logs to Log Analytics.”

Other options do not meet the requirement:

A. Company branding: Only affects login pages, not logging or auditing.

C. External Identities: Controls guest access, not logging.

D. App registrations: Used for app integration, not auditing.

According to the Microsoft SC-300: Identity and Access Administrator official study guide and Microsoft Learn modules on Azure AD Identity Governance, the correct way to manage user access—especially for scenarios involving both internal and external users—is through Entitlement Management in Azure AD Identity Governance.

Entitlement Management uses access packages to define and automate how users obtain access to resources such as groups, SharePoint sites, and applications. Access packages contain policies that specify who can request access (internal users, external users, or both) and how that access is approved and periodically reviewed. The guide clearly states:

“Access packages provide a structured method to configure and automate access for users, ensuring that access assignments follow the organization’s policy and compliance requirements.”

To enable external collaboration with another organization (such as fabrikam.com), Microsoft documentation emphasizes that you must create a connected organization. A connected organization represents an external directory or domain whose users can be invited to request access packages or participate in identity governance workflows. The connected organization defines trust boundaries for cross-tenant collaboration, without requiring domain federation or acceptance.

In summary:

Access packages configure and automate user access.

According to the Microsoft SC-300: Identity and Access Administrator Study Guide and the Microsoft Learn module “Publish on-premises apps for remote access using Azure AD Application Proxy”, Azure AD Application Proxy enables secure remote access to internal, on-premises web applications without requiring VPN access.

In the scenario, App1 is an on-premises application hosted within the Litware network, and the technical requirements specify that it must be securely accessible to both internal and external users — including Fabrikam guest accounts — through Azure AD authentication.

Microsoft’s official documentation states:

“Azure AD Application Proxy provides secure remote access to on-premises web applications, integrating with Azure AD for single sign-on (SSO) and conditional access policies.”

Given that the environment already includes a server (SERVER1) running the Azure AD Application Proxy connector, and that Litware wants to enforce Azure AD Conditional Access and MFA for App1, Azure AD Application Proxy is the correct implementation.

The other options are not suitable:

A. Policy set in Microsoft Endpoint Manager: Used for device compliance and app management, not for publishing on-premises apps.

B. App configuration policy in Endpoint Manager: Used for mobile app configuration (e.g., MAM policies), not for access publishing.

C. App registration in Azure AD: Used for modern cloud or SaaS apps integration, but App1 is on-premises and needs proxy access.

Correct Answer: D. Azure AD Application Proxy