MS-700 Manage Teams, Channels, Chats, and Apps Practice Question
You are tasked with ensuring that only specific users can create teams. Which action achieves this effectively?
⚠ Common exam trap
The trap is that candidates look for a Teams-specific setting or role ('Team Creator') when the actual control lives at the Microsoft 365 Group layer — the exam tests whether you understand that Teams is built on top of Microsoft 365 Groups.
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
✓
Configure Microsoft 365 Group creation settings.
In Microsoft Teams, team creation is governed by the underlying Microsoft 365 Group creation settings. By restricting who can create Microsoft 365 Groups (via the Microsoft 365 admin center, Entra ID, or PowerShell), you effectively control who can create teams, since every team is backed by a group. This is the documented and supported method for limiting team creation to specific users.
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 global Teams policy.
Why it's wrong here
The global Teams policy does not control group creation permissions, which are the foundation of Teams. It manages features like meeting options and private channel creation, but it cannot restrict the underlying group creation capability, making it the wrong place to perform this specific administrative configuration task.
- ✓
Configure Microsoft 365 Group creation settings.
Why this is correct
Restricting group creation to a specific security group is the recommended method for controlling the number of teams created. Because every team is backed by a group, this approach is the most effective and direct way to enforce centralized governance over the entire team creation process within your organization.
- ✗
Assign the 'Team Creator' role to users.
Why it's wrong here
There is no built-in 'Team Creator' role in Microsoft 365. Team creation permissions are tied to group creation settings, which are configured at the group service level, not by assigning a role to users. Attempting to find such a role will result in failure, as it does not exist.
- ✗
Set the Org-wide app settings.
Why it's wrong here
Org-wide app settings are used to manage third-party applications and their availability across the tenant. They do not control group or team creation, which is a structural feature of the tenant's collaboration service. Modifying these settings will not have any impact on the ability for users to create teams.
About these practice questions
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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
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