Which DNS Record Is Needed to Add a Microsoft 365 Domain?
Overview - Fabrikam, Inc. is an electronics company that produces consumer products. Fabrikam has 10,000 employees worldwide. Fabrikam has a main office in London and branch offices in major cities in Europe, Asia, and the United States. Existing Environment - Active Directory Environment - The network contains an Active Directory forest named fabrikam.com. The forest contains all the identities used for user and computer authentication. Each department is represented by a top-level organizational unit (OU) that contains several child OUs for user accounts and computer accounts. All users authenticate to on-premises applications by signing in to their device by using a UPN format of [email protected]. Fabrikam does NOT plan to implement identity federation. Network Infrastructure - Each office has a high-speed connection to the Internet. Each office contains two domain controllers. All domain controllers are configured as DNS servers. The public zone for fabrikam.com is managed by an external DNS server. All users connect to an on-premises Microsoft Exchange Server 2016 organization. The users access their email by using Outlook Anywhere, Outlook on the web, or the Microsoft Outlook app for iOS. All the Exchange servers have the latest cumulative updates installed. All shared company documents are stored on a Microsoft SharePoint Server farm. Requirements - Planned Changes - Fabrikam plans to implement a Microsoft 365 Enterprise subscription and move all email and shared documents to the subscription. Fabrikam plans to implement two pilot projects: • Project1: During Project1, the mailboxes of 100 users in the sales department will be moved to Microsoft 365. • Project2: After the successful completion of Project1, Microsoft Teams will be enabled in Microsoft 365 for the sales department users. Fabrikam plans to create a group named UserLicenses that will manage the allocation of all Microsoft 365 bulk licenses. Technical Requirements - Fabrikam identifies the following technical requirements: • All users must be able to exchange email messages successfully during Project1 by using their current email address. • Users must be able to authenticate to cloud services if Active Directory becomes unavailable. • A user named User1 must be able to view all DLP reports from the Microsoft Purview compliance portal. • Microsoft 365 Apps for enterprise applications must be installed from a network share only. • Disruptions to email access must be minimized. Application Requirements - Fabrikam identifies the following application requirements: • An on-premises web application named App1 must allow users to complete their expense reports online. App1 must be available to users from the My Apps portal. • The installation of feature updates for Microsoft 365 Apps for enterprise must be minimized. Security Requirements - Fabrikam identifies the following security requirements: • After the planned migration to Microsoft 365, all users must continue to authenticate to their mailbox and to SharePoint sites by using their UPN. • The membership of the UserLicenses group must be validated monthly. Unused user accounts must be removed from the group automatically. • After the planned migration to Microsoft 365, all users must be signed in to on-premises and cloud-based applications automatically. • The principle of least privilege must be used. You are evaluating the required processes for Project1. You need to recommend which DNS record must be created while adding a domain name for the project. Which DNS record should you recommend?
Community Votes
100% of anonymous learners picked answer C. Votes are pick records left by other test-takers — they are not the verified answer.
Community Insight
It tests the DNS record used for Microsoft 365 domain verification, and the trap is confusing the verification TXT record with NS, HINFO, or PTR records that serve other DNS purposes.
Adding a custom domain to Microsoft 365 requires a DNS ownership verification record, and the question asks which record type to create while adding the domain for Project1. This guide establishes that TXT is the correct record for proving domain ownership in the Fabrikam migration.
A common mistake is choosing NS, assuming the domain must be delegated to Microsoft 365; in reality, adding a domain name for verification uses a TXT record, not name server delegation.
Community Discussion (4 comments)
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Expert Analysis
Why the Answer Is Correct
Microsoft 365 requires a DNS record in the public domain's zone to verify that Fabrikam owns fabrikam.com before mailboxes and services can use the custom domain. During domain onboarding, Microsoft provides a TXT value (or an MX record in some flows) that must be created in public DNS; the TXT record is the standard verification method and is explicitly listed as the answer. Because Project1 moves sales mailboxes to Microsoft 365 while users keep [email protected], the fabrikam.com domain must be added and verified in the tenant first. TXT verification does not affect mail routing, so it minimizes disruption to existing Exchange 2016 mail flow as required. The other record types do not serve this ownership-proof purpose.Why the Other Options Are Wrong
A name server (NS) record delegates DNS authority for a domain to another DNS provider, which is not the same as verifying ownership and is not what the question asks for when adding a domain name. HINFO records are informational host CPU/OS records with no role in Microsoft 365 domain verification. PTR records map an IP address to a hostname for reverse DNS lookups and are not used to prove domain ownership. Choosing NS or PTR confuses unrelated DNS administration tasks with the Microsoft 365 custom-domain verification step.Community Comment Notes
As Khanbaba43 put it, "Answer: C i.e TXT", and Khattak3143 also confirmed "C Correct answer." Krayzr noted the question is repeated in the dump, and Hchfyvggjg simply wrote "déjà vu", reflecting frustration with repetition rather than disagreement. The community consensus is therefore fully aligned with the TXT record answer. No commenter proposed NS, HINFO, or PTR, so there is no substantive counterargument to address.Official Reference
Exam Strategy
When a Microsoft 365 question asks about adding a domain name, isolate the first verification step: Microsoft gives you a TXT value to publish in public DNS. Do not overthink delegation or reverse lookups; NS and PTR records do not prove ownership during domain onboarding.
Frequently Asked Questions
Why is a TXT record used instead of an NS record when adding fabrikam.com to Microsoft 365?
Microsoft 365 uses a TXT record to prove you own the public domain; NS records delegate DNS authority, which is not required for simple domain verification.
Can a PTR record verify domain ownership for Project1?
No. PTR records provide reverse DNS lookup from IP to hostname and are not used by Microsoft 365 to validate a custom domain.
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