MS-700 Monitor, Report on, and Troubleshoot Teams Practice Question
Several users report they no longer have the option to create new Teams. You suspect a change was made to the Microsoft 365 Group creation settings. Which TWO actions should you take to investigate and resolve this? (Each correct answer presents a complete solution).
⚠ Common exam trap
MS-700 often tests the dependency between Teams and Microsoft 365 Groups, causing candidates to focus on Teams-specific policies rather than the underlying Entra ID group creation settings.
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
✓
Check the Microsoft 365 Group creation policy in Entra ID.
Option B is correct because the ability to create new Teams is governed by the Microsoft 365 Group creation settings in Entra ID (Azure AD); if the group creation policy is restricted so that only certain users or security groups can create Microsoft 365 Groups, users lose the option to create new Teams, so checking this policy identifies the root cause. Option D is correct because the Microsoft 365 Audit Logs record administrative and directory changes, including updates to group settings and group creation permissions, allowing you to confirm who changed the policy and when. Option A is incorrect because Teams Messaging policies control chat and messaging features (such as edit/delete messages and chat permissions), not the ability to create Teams or Microsoft 365 Groups. Option C is incorrect because reinstalling the Teams desktop client does not affect tenant-level group creation permissions and would not restore the create-Team option. Option E is incorrect because Guest Access in the Teams Admin Center controls whether external guests can be added to teams, not whether internal users can create new Teams.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Modify the Teams Messaging policy.
Why it's wrong here
Messaging policies control features like chat, emojis, and message deletion. They have no control over the ability to create a team or an underlying Microsoft 365 Group. This setting would be irrelevant to a user's inability to see the 'Create a Team' button.
- ✓
Check the Microsoft 365 Group creation policy in Entra ID.
Why this is correct
Microsoft 365 Groups are the foundation of Teams. If group creation is restricted to a specific security group in Entra ID, any user not in that security group will lose the ability to create new Teams. This is the most common cause of this issue.
- ✗
Reinstall the Teams desktop client for the affected users.
Why it's wrong here
This issue is a server-side permission or policy setting, not a local software corruption issue. Reinstalling the client will not change the user's permissions and will not restore the 'Create a Team' option if it has been disabled by an administrative policy.
- ✓
Review the Microsoft 365 Audit Logs for Group settings changes.
Why this is correct
Audit logs will show if an administrator recently changed the 'EnableGroupCreation' setting or modified the membership of the group allowed to create M365 Groups. This helps identify when the change occurred and which administrator was responsible for the modification.
- ✗
Enable Guest Access in the Teams Admin Center.
Why it's wrong here
Guest access allows external users to join existing teams; it does not control whether internal users can create new teams. Enabling or disabling guest access has no impact on the 'Create Team' functionality for the organization's licensed internal users.
Visual reference
About these practice questions
Courseiva writes every MS-700 question from scratch — 211 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MS-700 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 MS-700 exam.