- A
Data classification
Correct. The label and controls are part of data classification.
- B
Data retention
Why wrong: Retention is about storage duration.
- C
Data obfuscation
Why wrong: Obfuscation is a technique, not classification.
- D
Data masking
Why wrong: Data masking hides data, not the classification process.
ISC2 CC Security Principles Practice Question
This CC practice question tests your understanding of security principles. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An organization labels its financial reports as "Confidential" and requires encryption at rest and in transit. This is an example of:
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Data classification
Data classification determines handling requirements (e.g., encryption for confidential data).
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Data classification
Why this is correct
Correct. The label and controls are part of data classification.
Related concept
CIDR notation defines the prefix length.
- ✗
Data retention
Why it's wrong here
Retention is about storage duration.
- ✗
Data obfuscation
Why it's wrong here
Obfuscation is a technique, not classification.
- ✗
Data masking
Why it's wrong here
Data masking hides data, not the classification process.
Common exam traps
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Detailed technical explanation
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
- CIDR notation defines the prefix length.
- Block size helps identify subnet boundaries.
- Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
- The required host count determines the smallest suitable subnet.
TExam Day Tips
- Write the block size before choosing the subnet.
- Check whether the question asks for hosts, subnets or a specific address range.
- Do not confuse /24, /25, /26 and /27 host counts.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Real-world example
How this comes up in practice
A developer is choosing between AES-256 (symmetric) and RSA-2048 (asymmetric) for encrypting a large file that will be sent to a partner. Symmetric encryption is fast but requires key exchange; asymmetric is slower but solves the key distribution problem. A hybrid approach — encrypt the file with AES, encrypt the AES key with RSA — is standard. Questions like this test whether you understand when each approach applies.
What to study next
Got this wrong? Here's your next step.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related CC subnetting questions on CIDR, address ranges, and subnet selection.
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FAQ
Questions learners often ask
What does this CC question test?
Security Principles — This question tests Security Principles — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Data classification — Data classification determines handling requirements (e.g., encryption for confidential data).
What should I do if I get this CC question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related CC subnetting questions on CIDR, address ranges, and subnet selection.
What is the key concept behind this question?
CIDR notation defines the prefix length.
About these practice questions
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Last reviewed: Jul 4, 2026
This CC practice question is part of Courseiva's free ISC2 certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CC exam.
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