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

Question 1

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?

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

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

Question 2

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 response time of less than one hour (30 minutes) 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 3

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

Question 4

A company has a mix of Microsoft 365 E3 and E5 licenses. They want to ensure that all users have access to Microsoft Defender for Office 365 (Plan 2) without upgrading everyone to E5. What is the most cost-effective approach?

Accepted Answer

Purchase Microsoft Defender for Office 365 (Plan 2) as an add-on for E3 users. Microsoft Defender for Office 365 (Plan 2) is available as an add-on license for Microsoft 365 E3 users, allowing them to gain the same advanced security capabilities as E5 users without upgrading their base plan. This is the most cost-effective approach since it avoids the higher per-user cost of upgrading all E3 users to E5 or purchasing standalone subscriptions that may not integrate as seamlessly with the existing E3 tenant.

Answer

Purchase a standalone Microsoft Defender for Office 365 Plan 2 subscription

Answer

Downgrade E5 users to E3 and purchase add-ons for all

Answer

Upgrade all E3 users to E5 to include Defender for Office 365 Plan 2

Question 5

An organization with 50,000 users is planning to deploy Microsoft 365 E5. They want to use Microsoft Entra ID P2 features for identity protection and access reviews. However, they notice that Entra ID P2 is included in E5 but not in E3. They also need to ensure compliance with regulatory requirements for data residency. Which additional licensing or configuration is required?

Accepted Answer

Add Microsoft 365 Multi-Geo licenses for users who need data residency in other regions. Data residency is addressed through Microsoft 365 Multi-Geo capabilities, which require additional licenses (per user beyond the central location). Entra ID P2 is included in E5, so no extra identity license is needed. Microsoft Purview Information Protection is also included.

Answer

Purchase Microsoft Purview Information Protection add-on

Answer

Enable data residency by configuring Azure Information Protection policies

Answer

Purchase Microsoft Entra ID P2 licenses separately for all users

Question 6

A user receives an error message when trying to activate Microsoft 365 Apps for enterprise. The administrator checks the license assignment and confirms the user has a Microsoft 365 E3 license. What is the most likely cause of the activation failure?

Accepted Answer

The user is signed in with a personal Microsoft account instead of a work or school account. If the user has not signed in with their work or school account, activation will fail. The license may not be assigned yet, but the scenario says it is assigned. The trial may have expired, but if the subscription is active, that's not the issue. The device might not meet requirements, but typical activation failures are due to sign-in issues.

Answer

The Microsoft 365 trial period has expired

Answer

The license is not yet assigned to the user

Answer

The device does not meet the minimum system requirements for Office

Question 7

A global organization with 20,000 users is migrating from on-premises Exchange to Exchange Online. They have a mix of Microsoft 365 E3 and E5 licenses. The compliance team requires that all mailboxes be placed on litigation hold within 24 hours of the migration. Which licensing consideration is critical?

Accepted Answer

Users with E3 licenses need an Exchange Online Plan 2 add-on for litigation hold. Litigation hold in Exchange Online requires an Exchange Online Plan 2 license or an Exchange Online Plan 1 license with the Exchange Online Archiving add-on. Microsoft 365 E3 includes Exchange Online Plan 1, which does not support litigation hold by itself. Therefore, users with E3 licenses need the Exchange Online Plan 2 add-on (or the equivalent Archiving add-on) to enable litigation hold. E5 licenses include Exchange Online Plan 2, so those users already have the necessary licensing.

Answer

All users must have Microsoft 365 E5 licenses to use litigation hold

Answer

Downgrade E5 users to E3 to simplify licensing

Answer

Litigation hold is automatically enabled for all mailboxes in Exchange Online

Question 8

An organization with 5,000 users has Microsoft 365 E3 licenses. They want to add Microsoft Defender for Office 365 (Plan 1) and Microsoft Purview Data Loss Prevention (DLP). Which THREE actions can achieve this?

Accepted Answer

Purchase Microsoft Purview DLP as an add-on. Microsoft 365 E3 licenses include Exchange Online Protection but not Defender for Office 365 (Plan 1) or Purview DLP. Both features can be added as standalone add-on subscriptions (Options A and D). Alternatively, upgrading all users to Microsoft 365 E5 bundles both features natively, making Option B correct. This approach avoids per-user add-on costs and simplifies license management.

Answer

Downgrade to Microsoft 365 E1 and add the features

Answer

Switch to Microsoft 365 Business Premium

Question 9

A company needs to provide support to its Microsoft 365 users. They want a plan that includes 24/7 phone support, web support, and the ability to submit an unlimited number of incidents. Which TWO support plans offer these features?

Accepted Answer

Microsoft 365 Business Premium. Microsoft 365 Business Premium includes 24/7 phone and web support with unlimited incidents as part of its standard support offering. This plan is designed for small and medium businesses that need advanced security and device management alongside comprehensive support.

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 E3 with Standard support

Answer

Microsoft 365 E1 with Professional Direct

Question 10

Your organization has 500 users and needs to comply with data residency requirements in the EU. You plan to purchase Microsoft 365 E3 subscriptions. Which licensing option should you choose to ensure data is stored only in EU datacenters?

Accepted Answer

Microsoft 365 E3 with Data Residency add-on. Microsoft 365 E3 with the Data Residency add-on ensures that customer data at rest is stored only in EU datacenters, meeting EU data residency requirements. The base Microsoft 365 E3 subscription does not guarantee EU-only storage; the add-on provides the necessary data location commitment and compliance controls.

Answer

Microsoft 365 Business Basic

Answer

Office 365 E3

Answer

Microsoft 365 E5

Question 11

A company with 200 users subscribes to Microsoft 365 Business Premium. They want to assign a license to a new employee. What is the most efficient way to assign the license?

Accepted Answer

Use group-based licensing in the Microsoft 365 admin center to automatically assign licenses to the user's group. Group-based licensing automates license assignment by linking a Microsoft Entra ID (formerly Azure AD) security group to a product license. Once the new employee is added to the designated group, the license is automatically assigned within minutes, eliminating manual steps and ensuring consistency across the organization.

Answer

Purchase an additional license and assign it via the Volume Licensing Service Center

Answer

Manually assign the license in the Microsoft 365 admin center to the user

Answer

Use Microsoft Graph PowerShell to assign the license

Question 12

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

Accepted Answer

Microsoft 365 E5. Microsoft Copilot for Microsoft 365 is an add-on subscription that requires users to have a qualifying base license, such as Microsoft 365 E3, E5, or Business Premium. Since the organization already uses Microsoft 365 E5, this satisfies the base license prerequisite. However, each user still needs an additional Copilot for Microsoft 365 add-on license. Option C is correct because E5 is a valid prerequisite license for the Copilot add-on.

Answer

Microsoft 365 F3

Answer

Microsoft 365 E3

Answer

Microsoft 365 Business Premium

Question 13

A customer has 100 users on Microsoft 365 Business Basic and wants to add Microsoft Defender for Office 365 Plan 1. Which licensing approach should they use?

Accepted Answer

Purchase Microsoft Defender for Office 365 Plan 1 as an add-on for each user. Microsoft Defender for Office 365 Plan 1 is an add-on that can be purchased for users who already have a qualifying subscription like Microsoft 365 Business Basic. It provides advanced threat protection features such as Safe Attachments and Safe Links, and it must be assigned per user on top of an existing Microsoft 365 license. Option C is correct because it directly describes this additive licensing model.

Answer

Purchase a separate Microsoft Defender for Office 365 Plan 1 subscription without underlying Microsoft 365 licenses

Answer

Upgrade all users to Microsoft 365 E3

Answer

Upgrade to Microsoft 365 E5

Question 14

Your organization is a non-profit. How can you obtain Microsoft 365 licenses at a reduced cost?

Accepted Answer

Apply for Microsoft’s non-profit program and purchase Microsoft 365 Business Premium at a discounted rate. Microsoft offers a Nonprofit Program that provides eligible organizations with discounted or donated Microsoft 365 licenses. After applying and being approved, nonprofits can purchase Microsoft 365 Business Premium at a significantly reduced rate, which includes advanced security and compliance features beyond the basic plans.

Answer

Purchase Microsoft 365 Business Basic from the Microsoft 365 admin center

Answer

Purchase Microsoft 365 Nonprofit Business Basic from the Microsoft 365 admin center

Answer

Use volume licensing through a Microsoft partner

Question 15

Your organization has a mix of Microsoft 365 E3 and E5 licenses. You want to ensure that all users have the same security baseline. Which licensing strategy should you use?

Accepted Answer

Assign Microsoft 365 E5 licenses to users requiring advanced security and keep E3 for others. It applies Microsoft 365 E5 licenses only to users who require advanced security features (such as Microsoft Defender for Office 365 and Microsoft Purview compliance), while keeping E3 for others. This ensures a consistent security baseline across the organization by leveraging the highest available security controls where needed, without unnecessary cost. E3 already provides a strong security baseline, so targeted assignment of E5 is the most efficient strategy.

Answer

Upgrade all users to Microsoft 365 E5

Answer

Downgrade all users to Microsoft 365 E3

Answer

Purchase a single E5 license and share it across all users