MS-900 Describe Microsoft 365 pricing, licensing, and support Practice Test 3 — 15 Questions

Question 1

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?

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

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 2

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. Microsoft 365 Multi-Geo is the feature that allows an organization to store data at rest in specific geographic locations to meet data residency requirements. Since the organization has 50,000 users and needs data residency in other regions, they must add Multi-Geo licenses for those users. Entra ID P2 is already included in E5, so no separate purchase is needed. Configuring Azure Information Protection policies does not address data residency.

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 3

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. Microsoft 365 Apps for enterprise activation requires signing in with a work or school account that has the appropriate license. If the user is signed in with a personal Microsoft account, activation will fail even if the license is assigned. The most likely cause is that the user is using the wrong account type.

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 4

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 5

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 6

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 7

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 8

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 9

Your company has 50 users on Microsoft 365 Business Premium. You need to provide phone system and audio conferencing capabilities. What should you do?

Accepted Answer

Add the Phone System and Audio Conferencing add-ons to the existing Business Premium licenses. Microsoft 365 Business Premium includes the rights to add Phone System and Audio Conferencing as add-ons. Option D is correct because you simply purchase the Phone System and Audio Conferencing add-on licenses for each user who needs those capabilities, without changing the base subscription. This is the most cost-effective and straightforward path to enable PSTN calling and dial-in conferencing for Business Premium users.

Answer

Purchase Microsoft 365 Business Voice

Answer

Purchase a Microsoft 365 Calling Plan subscription for each user

Answer

Upgrade all users to Microsoft 365 E5

Question 10

A user reports that they cannot access Microsoft 365 services. You check the Microsoft 365 admin center and see that their license is expired. What is the most likely result of an expired license?

Accepted Answer

The user loses access to Microsoft 365 services after a grace period. When a Microsoft 365 license expires, Microsoft does not immediately revoke access. Instead, the user enters a grace period (typically 30 days) during which they retain access but may see warnings. After the grace period ends, the user loses access to Microsoft 365 services, and their data is preserved for a further period (usually 90 days) before being deleted. This aligns with Microsoft's licensing and data retention policies.

Answer

Microsoft automatically purchases a new license

Answer

The user's data is immediately deleted

Answer

The user's account is automatically deleted

Question 11

Your organization is deploying Microsoft 365 for a subsidiary with 1,000 users. The subsidiary needs to be billed separately. Which licensing model should you use?

Accepted Answer

Create separate subscriptions in the same tenant with different billing profiles. The correct approach is to create separate subscriptions within the same Microsoft 365 tenant, each with its own billing profile. This allows the subsidiary to be billed separately while still benefiting from centralized administration, shared services (like Microsoft Entra ID), and unified management. Billing profiles in Microsoft 365 let you assign different payment methods and invoice recipients for different subscriptions, so the subsidiary can have its own billing without needing a separate tenant.

Answer

Create a separate Microsoft 365 tenant for the subsidiary

Answer

Use a Microsoft Enterprise Agreement for the entire organization

Answer

Create a single Microsoft 365 tenant with multiple subscriptions

Question 12

Which TWO of the following are required to use Microsoft 365 Apps for enterprise?

Accepted Answer

A supported operating system. Option A is correct because Microsoft 365 Apps for enterprise (Word, Excel, PowerPoint, Outlook, etc.) can only be installed and run on a supported operating system, such as Windows 10/11, the current or previous two versions of Windows Server with RDS, or one of the three most recent major versions of macOS; an unsupported OS means the apps cannot be installed or receive updates. Option D is correct because the applications require a valid Microsoft 365 license (for example, Microsoft 365 E3/E5 or Apps for enterprise) assigned to a user; without an active license, the apps run in reduced-functionality or read-only mode and cannot be activated. Option B is not required, since Exchange Online is only needed for hosted mailboxes and not for installing or using the Office applications themselves. Option C is not required, because the apps can be installed and used offline after activation, with internet connectivity needed only periodically for license revalidation and updates. Option E is not required, since Microsoft Entra ID (Azure AD) is used for identity and sign-in but is not a prerequisite for the apps to function.

Answer

Exchange Online mailbox

Answer

Persistent internet connectivity

Answer

Microsoft Entra ID

Question 13

Which THREE of the following are benefits of the Microsoft 365 E5 license compared to E3?

Accepted Answer

Power BI Pro. Power BI Pro is included with Microsoft 365 E5 but not with E3, enabling advanced data visualization and analytics capabilities. This is a key differentiator for organizations requiring self-service business intelligence tools integrated with Microsoft 365.

Answer

Exchange Online

Answer

Microsoft Entra ID P1

Question 14

Which TWO of the following support options are available for Microsoft 365?

Accepted Answer

Phone support. Phone support (B) is a standard support channel for Microsoft 365, available to all subscribers with a qualifying support plan, allowing users to call Microsoft directly for technical assistance. Online support via the Microsoft 365 admin center (D) is the primary self-service and ticket-based support portal where administrators can submit service requests, access health dashboards, and manage support cases.

Answer

On-site support

Answer

Chat support

Answer

Email support

Question 15

A company has 500 users and is considering moving to Microsoft 365. They need to ensure that all users have access to Exchange Online, SharePoint Online, and Teams, and they want to use Microsoft Entra ID P1 for identity management. Which Microsoft 365 subscription should they choose?

Accepted Answer

Microsoft 365 E3. Microsoft 365 E3 includes Exchange Online, SharePoint Online, Teams, and Microsoft Entra ID P1, meeting all stated requirements. Unlike Business Premium, E3 has no user limit, making it suitable for 500 users.

Answer

Microsoft 365 E5

Answer

Microsoft 365 Business Basic

Answer

Microsoft 365 Business Premium