A company deploys an Office 365 tenant.
You need to enable multi-factor authentication for Office 365.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the
correct order.
Answer: 
Explanation:
https://azure.microsoft.com/en-us/documentation/articles/multi-factor-authentication-get-started-cloud/
https://azure.microsoft.com/en-us/documentation/articles/multi-factor-authentication-get-started-cloud
Enabling MFA for Office 365 accounts
Enabling MFA for Office 365 accounts is straightforward. Login to the Office 365 Admin Center, go to Users, then click the “Setup” link beside “Set multi-factor authentication requirements”. You can now bulk-enable MFA for multiple accounts or select individual accounts to be enabled. Click Enable to start the process and then confirm the accounts for which MFA is to be enforced.
The next time the now-enabled accounts are logged into, the user will be asked to complete the MFA enablement process by providing the second authentication method. As you can see in Figure 1, I’ve opted for a text message to be sent to a mobile phone. A six-digit code is sent by SMS to the designated phone and the recipient has to input that number into the browser to complete the process.
As last step you will get your:
App passwords
Not all applications support the verification methods listed above, which is the reason why the “app password” mechanism exists. An app password, which is issued in the final stage of MFA enablement (see Figure 3), is a complex text string that can be input to complete the authentication process. App passwords were created to allow applications that don’t support OAuth-based authentication to create a valid access token to gain access to Office 365 data.
Figure 3: Viewing an app password
Once issued, the user has to keep the app password safe because it will be required to authenticate by some applications including ActiveSync-enabled mobile phones. This part of the process is the most painful because even though you can have multiple app passwords (for instance, one per app or one per device), they’re all automatically generated and are guaranteed to be impossible to recall when you need them. In any case, this page explains how app passwords work and how to manage them.
MFA doesn’t become apparent immediately it is enabled as users might have existing connections that need to expire be logged out before the new authentication regime becomes effective. The usual thing is for browser connections to require MFA first (including connections to SharePoint and OneDrive when opening files stored in these repositories), then other apps like Outlook 2016. Once authentication has occurred, it is valid for 14 days.
Important: If you want to use only Multi-Factor Authentication for Office 365, do *not* create a Multi-Factor Authentication provider in the Azure Management Portal and link it to a directory. Doing so will take you from Multi-Factor Authentication for Office 365 to the paid version of Multi-Factor Authentication.