Microsoft Security, Compliance, and Identity Fundamentals SC-900 Practice Question

Federation is an agreement between two identity providers that allows users authenticated by one organization to access resources in another without creating new accounts or replicating credentials. In a federated relationship, Azure AD issues security tokens that the partner application trusts, establishing single sign-on across security boundaries. Password hash synchronization moves credential hashes to the cloud but does not create trust with an external provider. Role-based access control assigns permissions inside a tenant but does not share identities externally. Privileged Identity Management adds governance to elevated roles and likewise does not facilitate cross-organization authentication.