External Azure AD B2C users are managed in the same directory as Azure AD users. True or false?

The correct response is that external Azure AD B2C users are not managed in the same directory as Azure AD users. Azure Active Directory (Azure AD) and Azure AD B2C (Business to Consumer) are two distinct services designed for different purposes. Azure AD is primarily focused on enterprise identity and access management, supporting organizational needs, whereas Azure AD B2C is geared towards managing customer identities and providing authentication services for applications that are exposed to end-users.

In Azure AD B2C, user accounts for external customers are stored in a separate directory that specifically accommodates the requirements of customer interactions, such as self-service sign-up, social identity provider integration, and consent management. This separation allows organizations to manage user data, authentication flows, and policies tailored to external users without impacting the internal user directory of Azure AD. As a result, external users of B2C reside in their own dedicated directory, differentiating them from traditional Azure AD user accounts.

Thus, the statement that external Azure AD B2C users are managed in the same directory as Azure AD users is false.