MS-900 Describe Microsoft 365 pricing and support Practice Test 7 — 15 Questions

Question 1

A nonprofit organization with 50 users needs to use Microsoft 365 for email, file storage, and online versions of Office apps. They have a very limited budget. Which Microsoft 365 plan should they consider first?

Accepted Answer

Microsoft 365 Nonprofit Business Basic. Microsoft 365 Nonprofit Business Basic (Option D) is the correct choice because it provides email (Exchange Online), file storage (OneDrive and SharePoint), and online versions of Office apps (Word, Excel, etc.) at no cost for eligible nonprofit organizations with up to 300 users. This plan is specifically designed for nonprofits with limited budgets, offering the required functionality without the expense of paid plans.

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Microsoft 365 Business Basic

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Microsoft 365 Business Premium

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Office 365 E3

Question 2

A startup with 25 employees needs business-grade email (50 GB mailbox per user), web versions of Office apps, and 1 TB of cloud storage per user. They do not need the desktop versions of Office or advanced security features. Which Microsoft 365 plan is the most cost-effective choice?

Accepted Answer

Microsoft 365 Business Basic. Microsoft 365 Business Basic provides business-grade email with 50 GB mailboxes, web versions of Office apps (Word, Excel, PowerPoint, etc.), and 1 TB of cloud storage per user via OneDrive for Business. Since the startup does not need desktop Office apps or advanced security features, this plan meets all stated requirements at the lowest cost.

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Microsoft 365 Business Standard

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Microsoft 365 Business Premium

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Microsoft 365 Apps for business

Question 3

A multinational organization with 5,000 users currently has Microsoft 365 E3 licenses. They must comply with a regulation that requires all Exchange Online mailbox data to be retained for 7 years (including deleted items) and the ability to place all mailboxes on litigation hold. They also need to automatically detect and label sensitive content such as passport numbers. What is the minimum licensing addition to meet all these requirements?

Accepted Answer

Microsoft 365 E5 Compliance add-on. The Microsoft 365 E5 Compliance add-on provides the required capabilities: litigation hold and a 7-year retention policy for Exchange Online mailboxes via Microsoft Purview, plus automatic detection and labeling of sensitive content like passport numbers using sensitivity labels and data loss prevention (DLP) policies. The E3 base license lacks these advanced compliance features, making the E5 Compliance add-on the minimum addition.

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Microsoft 365 E5 Security add-on

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Upgrade all users to Microsoft 365 E5

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Exchange Online Archiving add-on

Question 4

A small company with 15 employees needs business-grade email, desktop versions of Office apps (Word, Excel, PowerPoint), and 1 TB of cloud storage per user. They do not need advanced security or compliance features. Which Microsoft 365 plan is the most cost-effective choice?

Accepted Answer

Microsoft 365 Business Standard. Microsoft 365 Business Standard is the most cost-effective choice because it includes business-grade email (Exchange Online), desktop versions of Office apps (Word, Excel, PowerPoint), and 1 TB of cloud storage per user via OneDrive. It meets all stated requirements without the added cost of advanced security or compliance features found in higher-tier plans.

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Microsoft 365 Business Basic

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Microsoft 365 Business Premium

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Microsoft 365 E3

Question 5

A company with 500 users currently has Microsoft 365 Business Premium licenses. They need to add advanced eDiscovery features (including predictive coding and legal hold) and the ability to retain all communications for 10 years. What is the most cost-effective licensing addition?

Accepted Answer

Microsoft 365 E5 Compliance add-on. Microsoft 365 E5 Compliance add-on provides advanced eDiscovery features like predictive coding and legal hold, plus the 10-year retention required via litigation hold and retention policies. It is the most cost-effective addition because it adds these capabilities to existing Business Premium licenses without upgrading the entire suite to E5.

Answer

Microsoft 365 E5 add-on

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Office 365 E5

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Microsoft 365 Business Standard

Question 6

A charitable organization with 50 employees wants to use Microsoft 365 for email and collaboration but has a very limited budget. What should they do first to obtain licenses at a reduced cost?

Accepted Answer

Apply for Microsoft 365 Nonprofit eligibility. Microsoft offers discounted and donated Microsoft 365 plans for eligible nonprofit organizations. The first step is to apply for nonprofit eligibility through the Microsoft nonprofit portal. Once approved, the organization can purchase Microsoft 365 Nonprofit plans at a significantly reduced cost or even receive donations. Simply purchasing Business Basic or other plans without nonprofit status would not provide the discount.

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Purchase Microsoft 365 Business Basic licenses

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Use the free web versions of Office apps

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Purchase Microsoft 365 E3 licenses

Question 7

A company with 500 users is currently licensed with Microsoft 365 E3. The compliance team needs to add advanced eDiscovery capabilities (including predictive coding and legal hold) and the ability to retain data for up to 7 years. What is the most cost-effective licensing addition?

Accepted Answer

Microsoft 365 E5 Compliance add-on. Option A is correct because the Microsoft 365 E5 Compliance add-on provides advanced eDiscovery capabilities (including predictive coding and legal hold) and the ability to retain data for up to 7 years via retention policies. This add-on is the most cost-effective way to add these specific compliance features to an existing Microsoft 365 E3 subscription, as it avoids the higher cost of upgrading the entire suite to E5.

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Microsoft 365 E5 Security add-on

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Microsoft 365 E5

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Office 365 E5

Question 8

A charitable organization with 50 employees wants to use Microsoft 365 for business‑grade email, calendar, and online versions of Office apps. Their budget is extremely limited. What should they do first to obtain licenses at a reduced cost?

Accepted Answer

Apply for Microsoft 365 Nonprofit eligibility and then purchase discounted or donated plans. Microsoft offers discounted and donated plans specifically for eligible nonprofit organizations. By first applying for Microsoft 365 Nonprofit eligibility, the charitable organization can access Business Basic licenses at a significantly reduced cost or even receive donated subscriptions, aligning with their extremely limited budget while still obtaining business-grade email, calendar, and online Office apps.

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Purchase Microsoft 365 Business Basic licenses through a volume licensing program

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Use free consumer accounts like Outlook.com and Office Online

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Sign up for a Microsoft 365 Business Premium trial and rely on extensions

Question 9

A small business with 10 users needs Microsoft 365 desktop versions of Office apps (Word, Excel, PowerPoint), business-grade email, and 1 TB of cloud storage per user. They do not need advanced security or compliance features. Which Microsoft 365 plan is the most cost-effective choice?

Accepted Answer

Microsoft 365 Business Standard. Microsoft 365 Business Standard is the most cost-effective plan that includes desktop versions of Office apps (Word, Excel, PowerPoint), business-grade email (Exchange Online), and 1 TB of OneDrive cloud storage per user. Business Basic only provides web and mobile apps, not desktop versions. Business Premium adds advanced security and compliance features (e.g., Microsoft Defender for Office 365, Azure Information Protection) that the customer explicitly does not need. E3 is an enterprise plan with similar features but at a higher per-user cost, making it overkill for a 10-user small business.

Answer

Microsoft 365 Business Basic

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Microsoft 365 Business Premium

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Microsoft 365 E3

Question 10

A company currently has Microsoft 365 E3 licenses for all users. They need to retain all Exchange Online mailbox data for 10 years and place legal holds for litigation. Which add-on license provides these retention and eDiscovery capabilities?

Accepted Answer

Microsoft 365 E5 Compliance. Microsoft 365 E5 Compliance is the correct add-on because it includes advanced eDiscovery (e.g., eDiscovery Premium) and retention capabilities such as Preservation Lock and 10-year retention policies via Microsoft Purview. The base E3 license only provides basic retention and eDiscovery, lacking the extended 10-year retention and litigation hold features required for this scenario.

Answer

Microsoft 365 E5 Security

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Microsoft 365 E5

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Office 365 E5

Question 11

A charitable organization with 25 employees is eligible for Microsoft's non-profit licensing program. They need business-grade email, online versions of Office apps, and 50 GB of cloud storage per user. Their budget is very limited. Which plan should they choose?

Accepted Answer

Microsoft 365 Nonprofit Business Essential. Microsoft 365 Nonprofit Business Essentials provides business-grade email (Exchange Online), online versions of Office apps (Office for the web), and 50 GB of cloud storage per user (OneDrive for Business) at the lowest cost for nonprofits. This plan meets all stated requirements while respecting the organization's very limited budget, as it is the entry-level subscription for eligible nonprofit entities.

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Microsoft 365 Nonprofit Business Standard

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Microsoft 365 Enterprise E1

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Microsoft 365 Government G1

Question 12

A mid-size company with 300 users currently has Microsoft 365 Business Basic licenses. They need to add desktop versions of Office apps (Word, Excel, PowerPoint) and advanced security features such as Microsoft Defender for Office 365. What is the most cost-effective licensing upgrade?

Accepted Answer

Microsoft 365 Business Premium. Microsoft 365 Business Premium includes both the desktop versions of Office apps (Word, Excel, PowerPoint) and Microsoft Defender for Office 365 (Plan 1) in a single license. This makes it the most cost-effective upgrade from Business Basic because it bundles the required productivity and security features without the higher per-user cost of E3 or E5.

Answer

Microsoft 365 Business Standard

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Microsoft 365 E3

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Microsoft 365 E5

Question 13

A non-profit organization with 15 employees needs business-grade email, desktop versions of Office apps, and 1 TB of cloud storage per user. They are eligible for Microsoft's non-profit program. Which plan provides these features at the lowest cost?

Accepted Answer

Microsoft 365 Business Standard for Nonprofits. Microsoft 365 Business Standard for Nonprofits is the correct choice because it includes business-grade email (Exchange Online), desktop versions of Office apps (Word, Excel, PowerPoint, etc.), and 1 TB of OneDrive cloud storage per user, all at a significantly reduced cost (or free for qualifying organizations) under the nonprofit program. Business Basic only provides web and mobile Office apps, not desktop versions, and E3/Enterprise plans are more expensive and include advanced security and compliance features not required by this 15-employee organization.

Answer

Microsoft 365 Business Basic for Nonprofits

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Microsoft 365 E3 for Nonprofits

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Microsoft 365 Enterprise for Nonprofits

Question 14

A small business with 10 users needs the fully installed desktop versions of Office apps (Word, Excel, PowerPoint), business-class email, and 1 TB of cloud storage per user. They do not require advanced security or compliance features. Which Microsoft 365 plan is the most cost-effective choice?

Accepted Answer

Microsoft 365 Business Standard. Microsoft 365 Business Standard is the most cost-effective plan for this small business because it includes the fully installed desktop versions of Office apps (Word, Excel, PowerPoint), business-class email (Exchange Online), and 1 TB of OneDrive cloud storage per user. It meets all stated requirements without the higher cost of E3 or the lack of desktop apps in Business Basic or Office 365 E1.

Answer

Microsoft 365 Business Basic

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Microsoft 365 E3

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Office 365 E1

Question 15

A non-profit organization with 300 users currently uses Microsoft 365 Business Basic. They want to add Microsoft Defender for Office 365 (Plan 1) and endpoint management capabilities using Microsoft Intune. They are eligible for non-profit pricing. What is the most cost-effective way to obtain these features?

Accepted Answer

Upgrade to Microsoft 365 Business Premium. Microsoft 365 Business Premium includes both Microsoft Defender for Office 365 (Plan 1) and Microsoft Intune (for endpoint management) at no additional cost, and with non-profit pricing it is the most cost-effective option. Upgrading from Business Basic to Business Premium provides all required features in a single subscription, avoiding the need for separate add-ons or higher-tier enterprise plans.

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Switch to Microsoft 365 E3 licenses

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Add Microsoft 365 E5 Security add-on

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Add Microsoft 365 Business Extra File Storage