MS-700 Configure and Manage a Teams Environment Practice Question
Your organization has a Microsoft 365 E5 subscription. The security team wants to ensure that only members of a specific security group can create new teams, while all other users can still use Teams for chat and meetings. What should you do?
⚠ Common exam trap
The trap here is assuming that Teams policies or roles can control team creation, when actually it is governed by Microsoft 365 Groups settings.
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
✓
In the Microsoft 365 admin center, modify the Groups settings to allow only a specific security group to create Microsoft 365 groups, and ensure the security group is listed.
Team creation is controlled through Microsoft 365 Groups settings, not through Teams policies or roles. By default, all users can create groups and thus teams. To restrict creation to a specific security group, you configure the group creation settings in the Microsoft 365 admin center or Microsoft Entra ID to allow only that group. This allows other users to continue using Teams for chat and meetings without creating new 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.
- ✓
In the Microsoft 365 admin center, modify the Groups settings to allow only a specific security group to create Microsoft 365 groups, and ensure the security group is listed.
Why this is correct
Team creation relies on Microsoft 365 Groups. By default, all users can create groups. To restrict this, you use the Groups settings in the Microsoft 365 admin center or Microsoft Entra ID to allow only a designated security group to create groups. This effectively limits team creation to members of that group while others can still use Teams for chat and meetings.
- ✗
Use the Microsoft Teams admin center to assign the 'Teams Creator' role to the security group.
Why it's wrong here
There is no built-in 'Teams Creator' role in Microsoft Teams or Microsoft 365. Team creation permissions are not managed via roles in the Teams admin center. This option is fictional and would not achieve the requirement. The correct method involves configuring group creation settings in the Microsoft 365 admin center or Microsoft Entra ID.
- ✗
In the Microsoft Teams admin center, create a Teams policy that disables team creation for all users, then assign the policy to the security group.
Why it's wrong here
Teams policies do not control the ability to create teams. They govern messaging, meetings, and calling features. Disabling team creation is managed through the Microsoft 365 Groups settings or Microsoft Entra ID, not Teams policies. This approach would not restrict team creation and would incorrectly apply unrelated restrictions to the security group.
- ✗
In Microsoft Entra ID, create a conditional access policy that blocks the Teams web app for all users except the security group.
Why it's wrong here
Conditional access policies control access based on conditions like user, device, location, and app, but they do not govern the ability to create teams. Blocking the Teams web app would prevent access entirely, not just team creation, and would affect all Teams functionality. This does not meet the requirement of restricting only team creation.
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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