MS-700 Configure and Manage a Teams Environment Practice Question
You are setting up an Auto Attendant for your company's main reception line. Which TWO prerequisites must be met before you can finalize the Auto Attendant configuration? Each correct answer presents part of the solution.
⚠ Common exam trap
MS-700 often tests the misconception that a full E5 or E3 license is needed for resource accounts, when in fact the free Virtual User license is the correct and required choice.
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 Resource Account and assign it a Microsoft 365 Phone System - Virtual User license.
Option A is correct because an Auto Attendant in Microsoft Teams is anchored to a Resource Account, and that Resource Account must be licensed with a Microsoft 365 Phone System - Virtual User license (or a Phone System license) so the Auto Attendant can be provisioned and function. Option C is correct because the Resource Account must be assigned either a Microsoft service number (for Microsoft Calling Plans/Operator Connect) or a Direct Routing number, which serves as the phone number callers dial to reach the Auto Attendant. Option B is not required because an E5 license is not the correct licensing mechanism for a Resource Account used by an Auto Attendant; the Virtual User license is the appropriate SKU. Option D is incorrect because call logs are not stored in a dedicated team; Auto Attendant call handling and reporting are managed through Teams admin center and Call Analytics, not a team. Option E is incorrect because guest access settings are unrelated to Auto Attendant prerequisites and do not affect its configuration or operation.
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 Resource Account and assign it a Microsoft 365 Phone System - Virtual User license.
Why this is correct
Every Auto Attendant must be associated with a Resource Account, which serves as its identity in the system. To function without using a standard paid license, Microsoft provides a 'Virtual User' license specifically for these accounts, allowing them to handle calls and be assigned phone numbers.
- ✗
Assign a Microsoft 365 E5 license to the Resource Account.
Why it's wrong here
While an E5 license would technically work, it is an expensive and unnecessary use of a full user license. Microsoft provides the 'Virtual User' license specifically for Resource Accounts used by Auto Attendants and Call Queues at no additional cost for organizations with existing Phone System licenses.
- ✓
Assign a service number or a direct routing number to the Resource Account.
Why this is correct
For an Auto Attendant to receive calls from the public switched telephone network (PSTN), it must have a phone number assigned to its associated Resource Account. This number can be a service number obtained from Microsoft or a number provided through a Direct Routing configuration.
- ✗
Create a team specifically for the Auto Attendant to store call logs.
Why it's wrong here
Auto Attendants do not require a dedicated team to store logs; call data is managed centrally within the Teams usage reports and Call Quality Dashboard. Creating a team would not provide any functional benefit to the setup or operation of the Auto Attendant itself.
- ✗
Enable 'Allow guest access' in the Teams admin center.
Why it's wrong here
Guest access settings control whether external users can be added as members of a team and have no impact on the functionality of Auto Attendants. Auto Attendants handle incoming PSTN or federated calls, which is an entirely different communication flow than managing guest identities in a team.
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.