MS-700 Configure and Manage a Teams Environment Practice Question
You want to ensure that only approved third-party apps are available for users to install in Teams. Which setting should you modify?
⚠ Common exam trap
The trap is selecting the org-wide Teams settings option because it sounds broad, but app installation control is specifically delegated to App Permission Policies, which can be scoped per user or 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
✓
The App Permission Policy
The App Permission Policy in Teams controls whether users can install third-party apps and which apps are allowed or blocked. By configuring the policy to allow only specific approved apps (or by blocking all and permitting a curated list), administrators ensure that only approved third-party apps are available. This policy is the correct control for governing app installation at the user or group level.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Teams settings for organization-wide features
Why it's wrong here
Organization-wide settings define basic platform behavior like email integration and cloud storage. While they contain a section for apps, they are generally used for global defaults rather than granular control over specific third-party applications, which is better managed through dedicated App Permission Policies for individual users.
- ✓
The App Permission Policy
Why this is correct
App Permission Policies allow you to specify which apps are allowed or blocked for different groups of users. This is the primary mechanism for controlling the app experience, allowing admins to enforce a curated selection of tools while ensuring that unverified apps remain inaccessible to the users.
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The Teams policy assigned to the user
Why it's wrong here
The Teams policy is used to control structural features like channel creation, private channel functionality, and team visibility. It does not contain settings for application management, so changing this would have no impact on the available apps in the user's Teams client interface.
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The sensitivity label configuration
Why it's wrong here
Sensitivity labels are used for information protection, such as applying encryption or restricting file access. They are not intended for managing software or third-party applications. Using them for this purpose would be an incorrect application of the tool, leading to confusion and potential security policy gaps.
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.