MS-900 Describe Microsoft 365 pricing, licensing, and support Practice Test 2 — 15 Questions

Question 1

A company has a mix of full-time employees and seasonal contractors. They want to provide email and file storage to contractors without purchasing full licenses. Which licensing option should they use?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Exchange Online Kiosk. Exchange Online Kiosk is the correct choice because it provides email-only access (2 GB mailbox) and basic file storage via OneDrive for Business (2 GB) at a low per-user cost, specifically designed for users who need limited functionality without a full license. This meets the requirement for seasonal contractors who need email and file storage but do not require the full suite of Office apps or advanced features.

Answer

Microsoft 365 F3

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 Enterprise E1

Question 2

Which THREE factors should an organization consider when choosing between Microsoft 365 Business Premium and Microsoft 365 E3?

Accepted Answer

Compliance capabilities. Option A (Compliance capabilities) is correct because Microsoft 365 E3 includes the full Microsoft Purview suite—such as Data Loss Prevention, eDiscovery, and retention/audit features—while Business Premium only offers a limited subset, so regulatory and legal requirements are a key differentiator. Option B (Maximum number of users allowed) is correct because Microsoft 365 Business Premium is capped at 300 seats, whereas Microsoft 365 E3 has no upper user limit, making it the choice for larger organizations. Option E (Advanced security features included) is correct because E3 provides enterprise-grade tools like Microsoft Defender for Endpoint P1, Defender for Office 365 P1, and Microsoft Entra ID P1 conditional access, which exceed the security capabilities bundled in Business Premium. Option C (Availability of phone support) is not a distinguishing factor, since both plans include Microsoft phone and web support. Option D (Support for Mac users) is not a differentiator either, as both Business Premium and E3 support Windows, macOS, iOS, and Android clients.

Answer

Availability of phone support

Answer

Support for Mac users

Question 3

A small business with 25 employees is starting to use Microsoft 365. The owner purchased Microsoft 365 Business Basic licenses for everyone. After a month, employees report that they need the desktop versions of Word, Excel, and PowerPoint. The owner wants to upgrade the licenses but does not want to pay for features they don't need, such as advanced security. They also want to ensure that all users can continue using email, Teams, and SharePoint. Which licensing change should the owner make?

Accepted Answer

Upgrade to Microsoft 365 Business Premium. Microsoft 365 Business Premium includes desktop versions of Office apps (Word, Excel, PowerPoint) along with all the services they already have (email, Teams, SharePoint). It is designed for small to medium businesses and does not include advanced security features that the owner wants to avoid. Option A is incorrect because Microsoft 365 E3 is more expensive and includes enterprise-grade security features not needed by the small business. Option B is incorrect because Microsoft 365 F3 is for frontline workers and does not include desktop Office apps. Option C is incorrect because Exchange Online Plan 1 only adds email capabilities and does not provide desktop Office apps.

Answer

Upgrade to Microsoft 365 E3

Answer

Upgrade to Microsoft 365 F3

Answer

Purchase Exchange Online Plan 1 add-on

Question 4

A company has a Microsoft 365 E3 subscription with 300 users. They want to add Microsoft Defender for Identity to protect against identity-based attacks. What licensing step should they take?

Accepted Answer

Purchase the Microsoft Defender for Identity standalone license and assign it to all users.. Microsoft Defender for Identity can be purchased as a standalone add-on for Microsoft 365 E3 users. It is also included in Microsoft 365 E5. For E3 customers, the most direct approach is to buy the standalone license and assign it. Upgrading to E5 is an option but not required.

Answer

Assign the Enterprise Mobility + Security E3 add-on to all users.

Answer

Enable Defender for Identity in the Microsoft 365 admin center; it is included in E3.

Answer

Upgrade all users to Microsoft 365 E5, as Defender for Identity is not available as a standalone add-on.

Question 5

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 6

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 7

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 8

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 Entra ID Free. Password hash synchronization (PHS) is a feature of Microsoft Entra ID available in all editions, including the free tier. It is part of the directory synchronization capabilities provided by Microsoft Entra Connect. Therefore, Microsoft Entra ID Free is the minimum licensing required to support hybrid identity with PHS. Microsoft 365 E3 also works but is not minimal.

Answer

Microsoft Entra ID P1

Answer

Microsoft 365 E3

Answer

Microsoft Entra ID P2

Question 9

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 10

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 11

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 12

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 13

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 14

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. The Microsoft 365 admin center provides a 'Reactivate subscription' option for expired subscriptions, typically within a grace period (e.g., 30 days for most paid subscriptions). This restores access immediately without requiring a new purchase, minimizing both cost and downtime. The administrator can simply navigate to Billing > Your products, select the expired subscription, and click Reactivate.

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 15

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. 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