- A
Create a loyalty program.
Loyalty programs must be defined in the system.
- B
Define the returns policy for loyalty purchases.
Why wrong: Returns policy is not part of loyalty program setup.
- C
Set up reward points and tiers.
Reward points and tiers are essential for loyalty programs.
- D
Configure payment methods for loyalty points redemption.
Why wrong: Payment methods are configured separately from loyalty programs.
- E
Publish the online store to enable loyalty sign-up.
Why wrong: Online store publishing is not required for loyalty program setup.
MB-920 Describe Dynamics 365 Commerce Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 commerce. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
Which TWO actions should be performed to set up a loyalty program in Dynamics 365 Commerce?
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
Create a loyalty program.
Option A is correct because creating a loyalty program is the foundational step in Dynamics 365 Commerce; you must define the loyalty program entity (including name, currency, and date range) before any rewards or tiers can be associated. Option C is correct because reward points (with earning and redemption rules) and loyalty tiers (with benefits and thresholds) are essential components that must be configured within the loyalty program to enable differentiated customer rewards.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Create a loyalty program.
Why this is correct
Loyalty programs must be defined in the system.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Define the returns policy for loyalty purchases.
Why it's wrong here
Returns policy is not part of loyalty program setup.
- ✓
Set up reward points and tiers.
Why this is correct
Reward points and tiers are essential for loyalty programs.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Configure payment methods for loyalty points redemption.
Why it's wrong here
Payment methods are configured separately from loyalty programs.
- ✗
Publish the online store to enable loyalty sign-up.
Why it's wrong here
Online store publishing is not required for loyalty program setup.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the optional configuration of payment methods or returns policies with the mandatory core setup steps, leading them to select options that are technically possible but not required for the initial loyalty program creation.
Detailed technical explanation
How to think about this question
In Dynamics 365 Commerce, the loyalty program entity is stored in the Retail channel database and linked to the loyalty scheme, which defines earning and redemption rules per product or category. Reward points can be configured as either 'earn-only' or 'redeemable', and tiers use a points-based or transaction-based threshold to automatically upgrade or downgrade customers via a batch job (LoyaltyTierUpgrade). A real-world scenario: a retailer might create a 'Gold' tier requiring 5000 points earned in a year, with a 10% discount on all items, while the 'Silver' tier offers 5% – both defined under the same loyalty program.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Describe Dynamics 365 Commerce — study guide chapter
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Commerce — This question tests Describe Dynamics 365 Commerce — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a loyalty program. — Option A is correct because creating a loyalty program is the foundational step in Dynamics 365 Commerce; you must define the loyalty program entity (including name, currency, and date range) before any rewards or tiers can be associated. Option C is correct because reward points (with earning and redemption rules) and loyalty tiers (with benefits and thresholds) are essential components that must be configured within the loyalty program to enable differentiated customer rewards.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This MB-920 practice question is part of Courseiva's free Microsoft 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 MB-920 exam.
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