MS-102 Manage compliance by using Microsoft Purview Practice Question
Which THREE components are required to implement Microsoft Purview Data Lifecycle Management for Microsoft 365? (Choose three.)
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
✓
Retention labels
Options A, B, and E are correct because retention labels, retention policies, and a file plan are core components for Data Lifecycle Management. Option C is incorrect because sensitivity labels are part of Information Protection, not Data Lifecycle Management. Option D is incorrect because DLP is a separate solution.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Retention labels
Why this is correct
Retention labels are a required component because they apply retention and disposal rules to individual items, such as a single email or document, enabling granular control over the content lifecycle. Unlike policies that target entire locations, labels can be manually assigned by users or automatically applied based on conditions, and they are essential for record management and item-level compliance.
- ✓
Retention policies
Why this is correct
Retention policies are required because they apply retention settings to entire locations like SharePoint sites, OneDrive accounts, and Exchange mailboxes at scale, ensuring that all items residing in those containers inherit a default retention and deletion schedule. They work alongside retention labels to provide broad coverage for bulk content while labels handle exceptions and specific item-level requirements.
- ✗
Sensitivity labels
Why it's wrong here
Sensitivity labels are not one of the three components because their purpose is to classify and protect data through actions like encryption, access restrictions, and visual markings, not to govern how long content is retained or when it is disposed. While both label types involve metadata, sensitivity labels do not enforce any retention duration or deletion action, so they are unrelated to retention implementation.
- ✗
Data loss prevention policies
Why it's wrong here
Data loss prevention (DLP) policies are not a required component because they focus on detecting and blocking risky sharing or exfiltration of sensitive data across email, endpoints, and cloud apps. They do not define retention durations or trigger deletion of content, and they operate independently of retention management, making them a separate security control rather than a retention component.
- ✓
File plan
Why this is correct
File plan is a required component because it is the central management interface in Microsoft Purview that organizes and controls the lifecycle of retention labels, allowing administrators to create a structured taxonomy based on regulatory and business requirements. It also enables exporting label details for compliance audits and bulk operations, making it foundational to deploying a consistent retention label strategy.
Go deeper
Related to this question
Learn chapter
Microsoft 365 Tenant Setup
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
Key term
Microsoft Purview
Microsoft Purview is a unified data governance and compliance service that helps organizations discover, manage, and protect their data across on-premises, cloud, and hybrid environments.
About these practice questions
Courseiva writes every MS-102 question from scratch — 241 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 by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.