MS-900 Describe Microsoft 365 pricing, licensing, and support — 20 Questions

Question 1

Your organization has 500 users with Microsoft 365 E3 licenses. You want to add security features such as Microsoft Defender for Office 365 (Plan 1) and Microsoft Purview Information Protection. Which licensing approach should you recommend?

Accepted Answer

Upgrade all users to Microsoft 365 E5. Microsoft 365 E5 includes both Defender for Office 365 (Plan 1) and Purview Information Protection (formerly Azure Information Protection P2) natively, whereas E3 requires separate add-ons. Upgrading all users to E5 is the simplest and most cost-effective licensing approach when both security features are needed for all 500 users, as it avoids the complexity and potential per-user cost of stacking multiple add-on SKUs.

Answer

Keep E3 and add Microsoft 365 E5 Compliance add-on

Answer

Keep E3 and add Microsoft 365 E5 Security add-on

Answer

Keep E3 and use the Security & Compliance Center for E3

Question 2

A company with 200 employees needs to deploy Microsoft 365 Apps for Enterprise. They want to pay monthly and have no annual commitment. Which licensing program should they use?

Accepted Answer

Microsoft 365 Business Premium. Microsoft 365 Business Premium is the correct choice because it includes Microsoft 365 Apps for Enterprise (e.g., Word, Excel, PowerPoint) and is available as a monthly subscription with no annual commitment for organizations with up to 300 users. This aligns with the company's requirement of 200 employees and the desire for flexible, month-to-month billing.

Answer

Microsoft 365 Enterprise Agreement

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 E3

Question 3

Your organization is a non-profit with 1000 users. You want to minimize costs while providing email, file storage, and Microsoft Teams. Which licensing strategy should you use?

Accepted Answer

Apply for Microsoft 365 Nonprofit Business Basic. The correct answer is D: Apply for Microsoft 365 Nonprofit Business Basic. Nonprofits can get discounted or donated plans. Microsoft 365 Business Basic includes Exchange Online, SharePoint, OneDrive, and Teams. Option A (E3) is too expensive. Option B (Business Premium) includes more features than needed. Option C (E5) is overkill. Option D is the most cost-effective.

Answer

Purchase Microsoft 365 Business Premium licenses

Answer

Purchase Microsoft 365 E5 licenses

Answer

Purchase Microsoft 365 E3 licenses at full price

Question 4

A user is unable to send emails with attachments larger than 25 MB. The organization has Microsoft 365 Business Standard. What should you do to increase the attachment limit?

Accepted Answer

Modify the maximum message size in the Exchange admin center. In Microsoft 365 Business Standard, the default maximum message size for email attachments is 25 MB. To increase this limit, you must modify the maximum message size setting in the Exchange admin center (EAC), which controls the transport limits for the organization. This is the correct administrative action to raise the attachment size threshold beyond the default.

Answer

Instruct the user to compress the file

Answer

Purchase an Exchange Online Kiosk add-on

Answer

Have the user upload the file to OneDrive and share a link

Question 5

Your organization uses Microsoft 365 E5 and wants to implement Microsoft Copilot for Microsoft 365. Which licensing prerequisite must be met?

Accepted Answer

Microsoft 365 E5 or E3. Microsoft Copilot for Microsoft 365 requires a qualifying Microsoft 365 plan that includes the necessary AI and security features. Microsoft 365 E5 or E3 (with specific add-ons) are the minimum licensing prerequisites because they provide the underlying Microsoft Graph data, Microsoft 365 Apps, and enterprise-grade security (e.g., Microsoft Purview) that Copilot relies on for contextual AI responses. Without an E5 or E3 license, the Copilot service cannot integrate with the user's mailbox, documents, and calendar data.

Answer

An active Azure subscription

Answer

A Power Automate Premium license

Answer

Microsoft 365 Business Basic

Question 6

Your company has a mix of on-premises and cloud users. You plan to move to Microsoft 365 and need to support hybrid identity with password hash synchronization. Which licensing is minimally required?

Accepted Answer

Microsoft 365 E3. Microsoft 365 E3 includes Microsoft Entra ID P1, which provides the necessary features for hybrid identity with password hash synchronization (PHS). PHS is a core feature of Entra ID P1, enabling synchronization of password hashes from on-premises Active Directory to Azure AD for seamless authentication. Microsoft 365 E3 is the minimum licensing tier that bundles Entra ID P1, making it the correct choice for this scenario.

Answer

Microsoft Entra ID P1

Answer

Microsoft Entra ID P2

Answer

Microsoft Entra ID Free

Question 7

A customer reports that their Microsoft 365 Business Basic subscription is about to expire. They want to ensure uninterrupted service. What should they do?

Accepted Answer

Ensure recurring billing is enabled. Enabling recurring billing ensures that the subscription automatically renews before the expiration date, preventing any lapse in service. Without recurring billing, the subscription will expire at the end of the billing period, and the customer would lose access to Microsoft 365 services after a short grace period. This is the direct mechanism to maintain uninterrupted service for a Microsoft 365 Business Basic subscription.

Answer

Cancel the subscription immediately

Answer

Wait for the grace period to expire

Answer

Purchase an additional add-on license

Question 8

Your organization needs to provide access to Microsoft 365 for 50 temporary contractors who will work for 6 months. They require email and Teams. Which licensing approach is most cost-effective?

Accepted Answer

Purchase Microsoft 365 Business Basic licenses. Microsoft 365 Business Basic is the most cost-effective option for temporary contractors needing only email (Exchange Online) and Teams, as it provides these core services at the lowest per-user price. It is designed for small and medium businesses (up to 300 users) and includes web and mobile versions of Office apps, which are sufficient for basic communication needs. F3, E3, and E5 licenses include additional features (e.g., desktop Office apps, advanced security, compliance) that are unnecessary for short-term contractors, making them more expensive.

Answer

Purchase Microsoft 365 F3 licenses

Answer

Purchase Microsoft 365 E5 licenses

Answer

Purchase Microsoft 365 E3 licenses

Question 9

Your organization has Microsoft 365 E5 licenses. You want to ensure that users can access sensitive data only from compliant devices. Which Microsoft 365 service should you use?

Accepted Answer

Microsoft Intune. Microsoft Intune is the correct answer because it provides mobile device management (MDM) and mobile application management (MAM) capabilities that enforce compliance policies on devices before granting access to sensitive data. With Intune, you can define conditional access policies that require devices to be compliant (e.g., encrypted, jailbreak-detected, or running a minimum OS version) and then integrate with Microsoft Entra ID to block non-compliant devices from accessing corporate resources. This directly addresses the requirement to ensure users can access sensitive data only from compliant devices.

Answer

Microsoft Entra ID

Answer

Microsoft Defender for Cloud Apps

Answer

Microsoft Purview

Question 10

Which TWO Microsoft 365 support plans include 24/7 phone support? (Choose 2)

Accepted Answer

Microsoft 365 E5. Microsoft 365 E5 and Microsoft 365 Business Premium are the only two plans listed that include 24/7 phone support as part of their subscription. E5 is a high-end enterprise plan with advanced security and analytics, while Business Premium is a small-to-medium business plan that bundles productivity apps with device management and phone support. Both plans explicitly offer round-the-clock phone assistance for technical issues.

Answer

Microsoft 365 E3

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 F3

Question 11

Which THREE Microsoft 365 services are included in Microsoft 365 E5 but not in Microsoft 365 E3? (Choose 3)

Accepted Answer

Microsoft Defender for Identity. Microsoft Defender for Identity is included in Microsoft 365 E5 but not in E3. It is an on-premises Active Directory security solution that uses signals to identify, detect, and investigate advanced threats, compromised identities, and malicious insider actions. E3 includes only basic identity and access management features like Azure AD P1, whereas E5 adds Defender for Identity as part of its advanced threat protection suite.

Answer

Microsoft Teams

Answer

Exchange Online

Question 12

Which TWO Microsoft 365 plans include Microsoft Copilot for Microsoft 365 as a built-in feature? (Choose 2)

Accepted Answer

Microsoft 365 Business Premium. Microsoft Copilot for Microsoft 365 is included as a built-in feature only in the premium and enterprise-scale plans that include the full Microsoft 365 suite with advanced AI capabilities. Microsoft 365 Business Premium (A) and Microsoft 365 E5 (D) both include Copilot for Microsoft 365 as a standard component, providing AI-powered assistance across Word, Excel, PowerPoint, Outlook, and Teams without requiring an additional license.

Answer

Microsoft 365 E1

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 F3

Question 13

You are reviewing a JSON policy for group-based licensing in Microsoft Entra ID. The policy assigns Microsoft 365 E3 licenses to the Sales group but disables the Teams service plan. What is the most likely reason for disabling Teams?

Accepted Answer

The organization uses a third-party telephony system and wants to avoid paying for Teams Phone System. The correct answer is D: The organization may have an existing third-party telephony system and wants to avoid duplicate costs. Option A is unlikely because Teams is included in E3. Option B is not a typical reason. Option C is not related to licensing.

Answer

The organization has a limited number of Teams licenses

Answer

The Sales department does not need collaboration features

Answer

The users in Sales are external contractors

Question 14

You are a Microsoft 365 administrator. You run the Get-MsolAccountSku cmdlet and see the output. Which statement accurately describes the licensing situation?

Accepted Answer

There are 5 unused Microsoft 365 E3 licenses. The Get-MsolAccountSku cmdlet displays the number of licenses purchased, consumed, and remaining for each subscription. The output shows that Microsoft 365 E3 has 15 licenses purchased and 10 assigned, leaving 5 unused. Option C correctly identifies these 5 unused E3 licenses.

Answer

All E3 licenses are currently assigned to users

Answer

There are 10 unused Microsoft 365 F3 licenses

Answer

There are 200 unused Microsoft Power Automate Free licenses

Question 15

An administrator is reviewing an ARM template for a storage account. The template includes a storage account with Standard_LRS redundancy. Which Microsoft 365 licensing feature does this relate to?

Accepted Answer

Microsoft Purview audit log storage. The ARM template's Standard_LRS redundancy is used for Azure storage accounts, which underpin Microsoft 365's audit log storage in Microsoft Purview. Audit logs are stored in Azure Blob Storage, and Standard_LRS (Locally Redundant Storage) is the default redundancy tier for this data, providing three copies within a single datacenter. This directly links to the Purview audit log storage feature, not user-facing storage quotas or limits.

Answer

OneDrive for Business storage

Answer

SharePoint Online storage quotas

Answer

Exchange Online mailbox limits

Question 16

A company with 500 users is planning to adopt Microsoft 365. They need to ensure that all users have access to Microsoft Teams, Exchange Online, and SharePoint Online, as well as the latest desktop versions of Office apps. They also require advanced compliance features such as litigation hold and eDiscovery. Which Microsoft 365 licensing plan best meets these requirements?

Accepted Answer

Microsoft 365 E3. Microsoft 365 E3 is the correct choice because it includes all required services: Microsoft Teams, Exchange Online, SharePoint Online, and the latest desktop versions of Office apps (Office 365 ProPlus). It also provides advanced compliance features such as litigation hold and eDiscovery (via the Microsoft Purview compliance portal), which are not available in lower-tier plans like Business Basic or Business Premium.

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 Business Premium

Answer

Microsoft 365 E5

Question 17

A user is unable to access Microsoft Teams because the tenant's subscription has expired. The administrator wants to restore access as quickly as possible while minimizing costs. What should the administrator do?

Accepted Answer

Reactivate the expired subscription in the Microsoft 365 admin center. Reactivating the subscription in the admin center restores service quickly, usually within minutes to hours. Purchasing a new subscription requires re-assigning licenses and may take longer. Waiting is not proactive. Extending the trial is not possible after expiration.

Answer

Extend the trial period for 30 additional days

Answer

Wait for the subscription to automatically renew within 30 days

Answer

Purchase a new subscription and assign licenses to users

Question 18

A multinational organization has a Microsoft 365 E5 subscription for 10,000 users. Some users in a subsidiary require only email and basic office apps. The IT department wants to reduce costs by reassigning licenses without losing any existing functionality for those users. What is the most cost-effective licensing strategy?

Accepted Answer

Downgrade those users to Microsoft 365 E3 licenses. Option B is correct because Microsoft 365 E3 provides the same core functionality as E5—Exchange Online, SharePoint, Teams, and desktop Office apps—but lacks E5's advanced security and analytics features (e.g., Microsoft Defender for Office 365 Plan 2, Microsoft Purview, Power BI Pro). Downgrading users who need only email and basic Office apps to E3 reduces per-user licensing cost while preserving all required functionality, making it the most cost-effective strategy.

Answer

Keep all users on E5 but reduce the number of licenses

Answer

Switch to Microsoft 365 E1 licenses for those users

Answer

Assign Microsoft 365 Business Basic licenses to those users

Question 19

A company is evaluating Microsoft 365 support plans. They need access to web-based support, the ability to submit an unlimited number of incidents, and a guaranteed response time of less than one hour for critical issues. They have fewer than 50 users. Which support plan should they choose?

Accepted Answer

Microsoft 365 Business Premium. Microsoft 365 Business Premium includes 'Business Critical' support, which provides web-based support, unlimited incident submissions, and a guaranteed 1-hour response time for critical issues. This plan is designed for organizations with fewer than 300 users, making it suitable for the company with fewer than 50 users.

Answer

Microsoft 365 Business Basic with Standard support

Answer

Microsoft 365 E3 with Professional Direct support

Answer

Microsoft 365 E5 with Premier support

Question 20

An organization is using Microsoft 365 Business Premium. They want to add Microsoft 365 Copilot for 10 users to enhance productivity with AI features. How should the administrator procure the Copilot licenses?

Accepted Answer

Add Microsoft 365 Copilot as an add-on to the existing subscription. Microsoft 365 Copilot is available as an add-on to qualifying Microsoft 365 subscriptions, including Business Premium. This allows the administrator to license only the 10 users who need Copilot without changing the base subscription for all users. Option C correctly identifies this add-on licensing model.

Answer

Purchase standalone Microsoft 365 Copilot licenses

Answer

Upgrade all users to Microsoft 365 E5 to get Copilot included

Answer

Purchase a new Microsoft 365 E3 subscription and add Copilot