MS-700 Configure and Manage a Teams Environment Practice Question
You need to ensure that only members of the Human Resources department can create new Teams. Which TWO actions must you perform to implement this governance requirement?
⚠ Common exam trap
MS-700 often tests the misconception that Teams creation is controlled via Teams admin center policies, when in fact it is governed by Microsoft Entra ID group creation settings and requires a security group to scope permissions.
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 an Microsoft Entra ID security group containing the HR department members.
Option A is correct because restricting Microsoft 365 Group (and therefore Team) creation is done by allowing a specific Microsoft Entra ID security group to retain the group-creation right, so you must first create an Microsoft Entra ID security group that contains the HR department members. Option B is correct because the actual governance control is implemented by disabling Microsoft 365 Group creation for all users while permitting it only for that HR security group, which is configured via the Microsoft Entra ID directory settings (for example, the EnableGroupCreation / GroupCreationAllowedGroupId settings in the Microsoft 365 Groups / Microsoft Entra ID blade or the corresponding Microsoft Graph/Exchange Online policy). Together these two actions ensure that only HR members can create new Teams. Option C is not relevant because the Teams Communications Administrator role governs calling and meeting capabilities, not the ability to create Teams. Option D is incorrect because the Teams Messaging Policy's 'Create channels' option controls channel creation inside existing teams, not team creation. Option E is incorrect because Scoped directory search only limits which users appear in searches, not who can create 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.
- ✓
Create an Microsoft Entra ID security group containing the HR department members.
Why this is correct
A security group is necessary to identify the specific subset of users who will be granted the exception to the creation block. Microsoft 365 uses this group within a PowerShell script to map the 'EnableGroupCreation' attribute, allowing only these specific members to bypass the tenant-wide restriction.
- ✓
Disable Microsoft 365 Group creation for all users except the HR security group.
Why this is correct
Since Teams are built on Microsoft 365 Groups, you must modify the directory settings to disable group creation at the tenant level. This is performed via the AzureADPreview module, where you set 'EnableGroupCreation' to false and specify the HR security group ID as the designated creator group.
- ✗
Assign the Teams Communications Administrator role to all HR department members.
Why it's wrong here
The Teams Communications Administrator role focuses on managing calling and meeting features, not the creation of teams or underlying groups. Assigning this administrative role would grant unnecessary permissions for managing phone numbers and call quality, without actually providing the specific rights needed to create teams or groups.
- ✗
Modify the Teams Messaging Policy to disable the 'Create channels' option.
Why it's wrong here
Messaging policies control user-level features within a team, such as deleting messages or using GIFs. They do not control the creation of the Teams themselves. Disabling channel creation would only prevent users from adding channels to existing teams they already belong to, failing to address the primary goal.
- ✗
Enable the 'Scoped directory search' in the Teams admin center.
Why it's wrong here
Scoped directory search is used to limit which users can see each other in the directory, typically for privacy in multi-tenant environments. It has no technical impact on the permissions required to provision new Microsoft 365 Groups or Teams, and therefore does not assist in restricting team creation.
About these practice questions
One of 211 original MS-700 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. 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.