MS-700 Configure and Manage a Teams Environment Practice Question
You need to restrict a specific group of users from using any third-party apps in Teams, while still allowing them to use all Microsoft-provided apps. Which TWO steps are required to implement this using App Permission Policies?
⚠ Common exam trap
MS-700 often tests the difference between org-wide app settings and per-user App Permission Policies — the trap is choosing the org-wide toggle or Global policy when the requirement is to restrict only a specific group.
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 custom App Permission Policy and set 'Third-party apps' to 'Block all apps'.
Option A is correct because a custom App Permission Policy is the mechanism that lets you set the 'Third-party apps' control to 'Block all apps' while leaving Microsoft-provided apps allowed, which is exactly the granular restriction required for this group. Option B is correct because creating a policy alone does nothing until it is assigned to the specific users (or a group) who must be restricted, so the policy must be assigned to those users. Option C is not correct because disabling third-party apps in Org-wide app settings affects the entire tenant, not just the specific group. Option D is not correct because deleting apps from 'Manage apps' removes them tenant-wide and does not implement a per-user permission restriction. Option E is not correct because modifying the Global (Org-wide default) policy would change behavior for all users rather than only the targeted group.
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 custom App Permission Policy and set 'Third-party apps' to 'Block all apps'.
Why this is correct
This is the core configuration step. Within the policy, you can independently set the permissions for Microsoft apps, third-party apps, and custom apps. Choosing to block all third-party apps ensures that only the apps developed by Microsoft will be visible and usable for those users.
- ✓
Assign the custom App Permission Policy to the specific users.
Why this is correct
Policies do not take effect until they are assigned. You must link the newly created policy to the individual users or a group of users to ensure that the restrictions are applied to their specific Teams client, overriding the default global policy that might allow third-party apps.
- ✗
Disable the 'Allow third-party apps' toggle in the Org-wide app settings.
Why it's wrong here
Changing the Org-wide settings would affect every user in the entire tenant. This would exceed the requirement of only restricting a 'specific group' of users. Org-wide settings are a global kill-switch and lack the granularity needed for targeted policy application across different departments or roles.
- ✗
Delete all third-party apps from the 'Manage apps' list.
Why it's wrong here
Deleting apps from the 'Manage apps' list removes them from the entire tenant's catalog. This would prevent any user in the organization from using those apps, which is not what was requested. The goal is to restrict access for some users while presumably allowing others to continue using them.
- ✗
Modify the Global (Org-wide default) App Permission Policy.
Why it's wrong here
Modifying the Global policy would change the experience for all users who do not have a custom policy assigned. To isolate the change to a specific group, it is best practice to create a new custom policy rather than altering the default behavior for the entire organization.
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
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.