- A
Sensitivity labels
Sensitivity labels define the actual protection settings, such as encryption, access restrictions, and header/footer markings.
- B
Retention labels
Why wrong: Retention labels are used to enforce retention and deletion policies, not for classification or protection.
- C
Data Loss Prevention (DLP) policies
Why wrong: DLP policies can detect sensitive information and take actions like blocking sharing, but they do not apply labels automatically.
- D
Auto-labeling policies
Auto-labeling policies use conditions such as sensitive info types to automatically assign sensitivity labels to content.
MS-102 Manage compliance by using Microsoft Purview Practice Question
This MS-102 practice question tests your understanding of manage compliance by using microsoft purview. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A compliance officer needs to automatically classify documents in SharePoint Online that contain credit card numbers. The classification should apply a label that restricts access and adds a header. Which two Microsoft Purview features must be configured? (Choose two.)
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
Sensitivity labels
Sensitivity labels are correct because they are the Microsoft Purview feature that applies classification markings (such as headers and footers) and encryption or access restrictions to documents. For this scenario, a sensitivity label must be configured to enforce the required header and access restrictions on content containing credit card numbers.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Sensitivity labels
Why this is correct
Sensitivity labels define the actual protection settings, such as encryption, access restrictions, and header/footer markings.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Retention labels
Why it's wrong here
Retention labels are used to enforce retention and deletion policies, not for classification or protection.
- ✗
Data Loss Prevention (DLP) policies
Why it's wrong here
DLP policies can detect sensitive information and take actions like blocking sharing, but they do not apply labels automatically.
- ✓
Auto-labeling policies
Why this is correct
Auto-labeling policies use conditions such as sensitive info types to automatically assign sensitivity labels to content.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP policies with auto-labeling, but DLP policies do not apply labels or headers—they only enforce actions like blocking or notification, whereas auto-labeling policies are required to automatically assign the sensitivity label.
Detailed technical explanation
How to think about this question
Auto-labeling policies in Purview use conditions (e.g., sensitive info types like Credit Card Number) to automatically apply a sensitivity label to documents at rest in SharePoint Online. The sensitivity label itself defines the protection actions (e.g., 'Confidential' label with encryption and a header 'CONFIDENTIAL'), while the auto-labeling policy orchestrates the automatic application based on content inspection.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Manage compliance by using Microsoft Purview — study guide chapter
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FAQ
Questions learners often ask
What does this MS-102 question test?
Manage compliance by using Microsoft Purview — This question tests Manage compliance by using Microsoft Purview — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Sensitivity labels — Sensitivity labels are correct because they are the Microsoft Purview feature that applies classification markings (such as headers and footers) and encryption or access restrictions to documents. For this scenario, a sensitivity label must be configured to enforce the required header and access restrictions on content containing credit card numbers.
What should I do if I get this MS-102 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This MS-102 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-102 exam.
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