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What should you do?

Your company has a Microsoft 365 subscription and a Microsoft Azure Active Directory (Azure AD) tenant named contoso.onmicrosoft.com.

An external vendor has a Microsoft account that has a username of user1@outlook.com.

You plan to provide user1@outlook.com with access to several resources in the subscription.

You need to add the external user account to contoso.onmicrosoft.com. The solution must ensure that the external vendor can authenticate by using user1@outlook.com.

What should you do?
A . From Azure Cloud Shell, run the New-AzureADUser cmdlet and specifyCUserPrincipalName
user1@outlook.com.
B . From the Microsoft 365 admin center, add a contact, and then specify user1@outlook.com as the email address.
C . From the Azure portal, add a new guest user, and then specify user1@outlook.com as the email address.
D . From the Azure portal, add a custom domain name, and then create a new Azure AD user and use
user1@outlook.com as the username.

Answer: C

Explanation:

You can invite guest users to the directory, to a group, or to an application. After you invite a user through any of these methods, the invited user’s account is added to Azure Active Directory (Azure AD), with a user type of Guest. The guest user must then redeem their invitation to access resources. An invitation of a user does not expire.

The invitation will include a link to create a Microsoft account. The user can then authenticate using their Microsoft account. In this question, the external vendor already has a Microsoft account (user1@outlook.com) so he can authenticate using that.

Reference: https://docs.microsoft.com/en-us/azure/active-directory/b2b/add-users-administrator

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