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AZ-104 · Domain 1: Manage Azure identities and governance · 24% of the exam

Task 1.1: Manage Microsoft Entra users and groups

Creating users and groups, managing their properties, assigning licenses, inviting and managing external users, and configuring self-service password reset.

Study it

  • Microsoft Entra users and groups: creating them, their properties and dynamic membership

    Lesson coming

  • Licenses, external users and self-service password reset

    Lesson coming

Sample questions

Try each one before opening the answer. Every option is explained, with the Microsoft documentation page that proves it.

Question 1 · choose 1

Your tenant runs on Microsoft Entra ID Free. HR wants a security group whose membership follows the department attribute, so that users join and leave the group without anyone editing it. What does the tenant need before you can create this group?

  1. AAn administrative unit that is scoped to the department
  2. BA Microsoft Entra ID P1 license for each user who becomes a member
  3. CGroup-based licensing turned on for the new group
  4. DThe Groups Administrator role assigned to the person who creates it
Show the answer and why
  • AAn administrative unit that is scoped to the department

    Incorrect

    Administrative units scope who can manage a set of users; they aren't a group whose membership follows an attribute for access.

  • BA Microsoft Entra ID P1 license for each user who becomes a member

    Correct

    Dynamic membership groups require Entra ID P1 (or Intune for Education) for each unique user who is a member of one or more dynamic groups.

  • CGroup-based licensing turned on for the new group

    Incorrect

    Group-based licensing hands out product licenses to a group's members; it doesn't make the membership itself rule-based.

  • DThe Groups Administrator role assigned to the person who creates it

    Incorrect

    Groups Administrator can create and edit groups, but the role doesn't unlock dynamic membership on a Free tenant.

Dynamic membership is a premium feature. The tenant needs a Microsoft Entra ID P1 license (or Intune for Education) for every unique user who is a member of a dynamic group, although the licenses don't have to be assigned to those users.

Question 2 · choose 1

You create a cloud user and then try to assign a Microsoft 365 E3 license to the user directly. The assignment fails with a message about the user's location. Which user property must you set first?

  1. ACountry or region, under Contact information
  2. BOffice location, under Job information
  3. CPreferred language, under Settings
  4. DUsage location, under Settings
Show the answer and why
  • ACountry or region, under Contact information

    Incorrect

    Country or region is a contact detail; licensing checks the separate usage location setting, so filling this in doesn't clear the error.

  • BOffice location, under Job information

    Incorrect

    Office location is a job detail shown in the directory; it plays no part in deciding which services can be licensed to the user.

  • CPreferred language, under Settings

    Incorrect

    Preferred language sets the user's language for services; it isn't the location value that license assignment checks.

  • DUsage location, under Settings

    Correct

    Some services aren't available in every country, so a license can't be assigned until the user's usage location is specified.

License assignment checks the usage location because some Microsoft services aren't offered everywhere. A user assigned through a group inherits the tenant's location when none is set, but a direct assignment needs the property on the user first.

Question 3 · choose 1

Today any member of your tenant can invite guests. You must stop that, but a partner coordinator who holds no administrator role must keep inviting guests. Other administrators should keep their current abilities. What should you configure?

  1. ALimit guest invites to specific admin roles, and assign the coordinator Guest Inviter
  2. BLimit guest invites to specific admin roles, and make the coordinator a group owner
  3. CSet guest invites to no one in the organization, and assign the coordinator Guest Inviter
  4. DAdd the partner domain to the allow list, and leave guest invites unchanged
Show the answer and why
  • ALimit guest invites to specific admin roles, and assign the coordinator Guest Inviter

    Correct

    With that setting only User Administrators and Guest Inviters can invite, and the Guest Inviter role lets the coordinator keep inviting.

  • BLimit guest invites to specific admin roles, and make the coordinator a group owner

    Incorrect

    Group ownership doesn't let a user invite external users once invitations are restricted to admin roles.

  • CSet guest invites to no one in the organization, and assign the coordinator Guest Inviter

    Incorrect

    The no-one setting blocks invitations for everyone, administrators included, so the coordinator would be blocked as well.

  • DAdd the partner domain to the allow list, and leave guest invites unchanged

    Incorrect

    An allow list limits which domains can be invited; it doesn't change who in your tenant may send invitations, so every member could still invite.

Guest invite settings decide who may invite. The setting "Only users assigned to specific admin roles can invite guest users" leaves invitations to User Administrators and Guest Inviters, and the Guest Inviter role is the narrow way to give one non-admin that ability.

Question 4 · choose 1

You enabled self-service password reset for all users with one required method: security questions. Ordinary users reset without trouble, but a colleague who holds the Helpdesk Administrator role can't use security questions to reset her password. Why?

  1. ASecurity questions need the number of required methods set to two
  2. BHelpdesk Administrators are excluded from SSPR until you scope a group
  3. CAdmin roles get a fixed two-gate policy that bans security questions
  4. DSecurity questions need password writeback when the user is an admin
Show the answer and why
  • ASecurity questions need the number of required methods set to two

    Incorrect

    Security questions work as the single required method for ordinary users; the problem appears only for accounts in admin roles.

  • BHelpdesk Administrators are excluded from SSPR until you scope a group

    Incorrect

    Administrator accounts are enabled for SSPR by default; they're subject to a different policy, not excluded.

  • CAdmin roles get a fixed two-gate policy that bans security questions

    Correct

    Accounts in Entra administrator roles use a strong two-gate policy that needs two methods and prohibits security questions, and it can't be changed.

  • DSecurity questions need password writeback when the user is an admin

    Incorrect

    Writeback sends reset passwords to on-premises AD DS; it has nothing to do with which methods an admin can use.

Administrator accounts are enabled for SSPR with a default two-gate policy that differs from the user policy. It requires two pieces of authentication data, such as email, an authenticator app or phone, and prohibits security questions.

Question 5 · choose 2

You must invite 200 employees of a partner company as B2B guests this afternoon and don't want to enter them one at a time in the admin center. Which two methods meet the goal? (Choose TWO.)

  1. ABulk invite in the Users page, with a CSV of email addresses
  2. BMicrosoft Graph PowerShell running New-MgInvitation over a CSV
  3. CBulk create in the Users page, with a CSV of the partner users
  4. DMicrosoft Entra Connect cloud sync from the partner directory
  5. EGuest invite settings changed to let anyone in the organization invite
Show the answer and why
  • ABulk invite in the Users page, with a CSV of email addresses

    Correct

    Bulk operations > Bulk invite takes a CSV of email addresses and invitation preferences and sends B2B invitations.

  • BMicrosoft Graph PowerShell running New-MgInvitation over a CSV

    Correct

    Importing the CSV and calling New-MgInvitation for each row invites every user and can send the invitation email.

  • CBulk create in the Users page, with a CSV of the partner users

    Incorrect

    Bulk create makes new internal accounts in your tenant; it doesn't invite external users to sign in with their own accounts.

  • DMicrosoft Entra Connect cloud sync from the partner directory

    Incorrect

    Cloud sync provisions users from your own on-premises AD DS; it doesn't invite users of another organization.

  • EGuest invite settings changed to let anyone in the organization invite

    Incorrect

    That setting only widens who may invite; it doesn't send a single invitation.

Bulk invitations can be sent from the admin center with Bulk invite and a CSV template, or scripted with Microsoft Graph PowerShell by looping New-MgInvitation over a CSV.

Question 6 · choose 1

Kim is a B2B guest in your tenant. She redeemed her invitation with a personal Microsoft account, but her company now requires her to sign in with her work account, kim@fabrikam.com. She must keep her group memberships and app assignments in your tenant. What should you do?

  1. ADelete her guest account and invite kim@fabrikam.com
  2. BAdd kim@fabrikam.com to her Other emails and wait for her next sign-in
  3. CReset her redemption status so she redeems again with her work account
  4. DChange her user principal name to kim@fabrikam.com
Show the answer and why
  • ADelete her guest account and invite kim@fabrikam.com

    Incorrect

    A new invitation creates a new user object, so the old account's group memberships and app assignments would have to be rebuilt.

  • BAdd kim@fabrikam.com to her Other emails and wait for her next sign-in

    Incorrect

    The address is a preparation step only; she keeps signing in with the identity she redeemed with until her redemption status is reset.

  • CReset her redemption status so she redeems again with her work account

    Correct

    Resetting redemption reinvites the same user object, keeping its object ID, group memberships and app assignments, and her sign-in name changes to the new email.

  • DChange her user principal name to kim@fabrikam.com

    Incorrect

    The UPN isn't the identity a guest signs in with; even after a reset the guest's UPN stays the same.

When a guest has to sign in with a different email or identity provider, or has moved to another company but needs the same access, you reset the redemption status in the user's profile (or with PowerShell or the Microsoft Graph invitation API). The user redeems a new invitation and keeps the same object, so nothing has to be reassigned. Deleting and reinviting was the older workaround.

Question 7 · choose 1

Hundreds of Microsoft 365 groups are created for short projects. Groups that nobody needs any more should be removed unless their owners renew them. What should you configure?

  1. ADynamic membership on the project groups
  2. BA group naming policy
  3. CA Microsoft 365 group expiration policy
  4. DAn Azure Policy assignment that deletes unused groups
Show the answer and why
  • ADynamic membership on the project groups

    Incorrect

    Dynamic membership changes who is in a group; it never deletes the group.

  • BA group naming policy

    Incorrect

    A naming policy enforces prefixes and blocked words; it doesn't remove old groups.

  • CA Microsoft 365 group expiration policy

    Correct

    An expiration policy sets a lifetime for Microsoft 365 groups and asks owners to renew; groups that aren't renewed are deleted.

  • DAn Azure Policy assignment that deletes unused groups

    Incorrect

    Azure Policy governs Azure resources, not Microsoft Entra groups, so it can't expire or delete them.

An expiration policy gives Microsoft 365 groups a lifetime. Owners are notified to renew, and a group that isn't renewed expires and is deleted, remaining restorable for 30 days.

Question 8 · choose 1

A consultant joined as a B2B guest. Leadership wants this one person to have the same directory privileges as employees, while other guests stay limited. What should you change?

  1. AThe consultant's role to Guest Inviter
  2. BThe consultant's User type from Guest to Member
  3. CThe tenant's guest user access to the same access as members
  4. DThe guest invite settings to allow member users to invite
Show the answer and why
  • AThe consultant's role to Guest Inviter

    Incorrect

    Guest Inviter lets a user invite guests; it doesn't change the user's own directory privileges.

  • BThe consultant's User type from Guest to Member

    Correct

    User type controls guest or member privileges for that account, while the consultant keeps signing in with the external identity.

  • CThe tenant's guest user access to the same access as members

    Incorrect

    That setting applies to every guest in the tenant, not one person.

  • DThe guest invite settings to allow member users to invite

    Incorrect

    Invite settings decide who may invite; they don't change an existing guest's access.

An external user can be an external member: they authenticate with their own account but have member privileges. Changing the user type on one account does that without widening access for all guests.

Question 9 · choose 1

SSPR is enabled for all users, but most haven't registered any methods. You want each user to be asked to register the next time they sign in. Which SSPR setting should you change?

  1. ANotifications: Notify users on password resets
  2. BCustomization: a custom helpdesk link
  3. CAuthentication methods: set the number of methods required to two
  4. DRegistration: Require users to register when signing in
Show the answer and why
  • ANotifications: Notify users on password resets

    Incorrect

    This sends an email after a reset; it doesn't drive registration.

  • BCustomization: a custom helpdesk link

    Incorrect

    A custom link points users to help; it doesn't prompt them to register.

  • CAuthentication methods: set the number of methods required to two

    Incorrect

    Requiring more methods makes reset stronger but doesn't prompt anyone to register.

  • DRegistration: Require users to register when signing in

    Correct

    With this set to Yes, users in scope are prompted to register their authentication information at sign-in.

The Registration page of SSPR can require users to register when signing in, and sets how often they reconfirm their information.

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