What should you do?

You need to meet the security requirement for the vendors.

What should you do?
A . From the Azure portal, add an identity provider.
B. From Azure Cloud Shell, run the New-AzureADUser cmdlet and specify the CUserPrincipalName parameter.
C. From the Azure portal, create guest accounts.
D. From Azure Cloud Shell, run the New-AzureADUser cmdlet and specify the CUserType parameter.

Answer: B

Explanation:

✑ Vendors must be able to authenticate by using their Microsoft account when accessing Contoso resources.

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 vendors already have Microsoft accounts so they can authenticate using them.

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

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