In federated identity management, what is true about cross-organization identity data?

• A. Firms share identity databases openly
• B. Firms do not query other firms' identity databases
• C. Firms replicate all identities to partners
• D. Firms replace identity stores

Answer: (B)

In federated identity management, trust is established between organizations so users can access resources across domains without handing over entire identity databases. The home organization authenticates the user and issues a token or assertion that the relying party (the service) trusts. This means there’s no need to query or replicate another firm’s entire identity store; the service relies on the identity provider to vouch for the user and release only the necessary attributes. Therefore, cross-organization identity data isn’t openly shared or replicated; each organization keeps its own identity data, granting access based on trusted assertions.