MS-700 Configure and Manage a Teams Environment Practice Question
You need to restrict a specific group of users in the Marketing department from creating private channels within their teams. Which TWO configurations must be performed to achieve this? Each correct answer presents part of the solution.
⚠ Common exam trap
MS-700 often tests the misconception that editing the Global policy is the way to restrict a subset of users — candidates forget that Global affects everyone and that a custom policy must be created and assigned to the 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 new Teams channels policy and disable the 'Create private channels' setting.
Option A is correct because private channel creation is controlled by a Teams channels policy, and the 'Create private channels' setting within that policy must be turned off to block users from creating private channels. Option C is correct because a policy only takes effect once it is assigned to the targeted users; assigning the custom channels policy to the Marketing department users applies the restriction to exactly that group. Option B is incorrect because modifying the Global (Org-wide default) policy would affect all users in the tenant, not just the Marketing department. Option D is incorrect because the Microsoft 365 admin center Groups settings do not contain a control for private channel creation in Teams. Option E is incorrect because guest access settings govern external guest capabilities, not private channel creation by internal Marketing users, and no such 'Prevent channel creation' setting exists there.
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 new Teams channels policy and disable the 'Create private channels' setting.
Why this is correct
Teams channel policies allow administrators to define specific permissions for users, such as whether they can create private or shared channels. By creating a custom policy with private channel creation disabled, you create the administrative framework necessary to restrict these specific actions for any user to whom the policy is assigned.
- ✗
Modify the Global (Org-wide default) Teams channels policy.
Why it's wrong here
Modifying the Global policy would apply the restriction to every user in the organization by default. Since the requirement is specifically for the Marketing department, changing the organization-wide settings would be too broad and would negatively impact other departments that still require the ability to create and manage private channels.
- ✓
Assign the custom Teams channels policy to the Marketing department users.
Why this is correct
Once a custom policy is defined, it must be assigned to the target users or groups for the restrictions to take effect. Assigning the policy specifically to the Marketing users ensures that only their permissions are restricted, leaving the rest of the organization's capabilities intact and following the principle of least privilege.
- ✗
Disable private channel creation in the Microsoft 365 admin center under Groups settings.
Why it's wrong here
Settings in the Microsoft 365 admin center for Groups do not provide the granular control needed to disable private channel creation for specific users within Teams. Those settings are generally focused on group-level permissions and visibility rather than the specific channel types and user-level features managed through Teams-specific policies.
- ✗
Enable the 'Prevent channel creation' setting in the Teams guest access settings.
Why it's wrong here
Guest access settings only apply to external users invited into the tenant and do not control the permissions of internal employees. Using this setting would fail to address the requirement of restricting internal Marketing department members, as it is designed to manage the behavior of external participants within the tenant.
About these practice questions
This MS-700 question is part of Courseiva's 211-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam 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.