This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 company uses Microsoft 365 and wants to automatically classify documents containing credit card numbers as 'Highly Confidential' and apply encryption when shared externally. Which solution should they use?
Microsoft Intune
Why wrong: Intune is for mobile device management.
Microsoft Sentinel
Why wrong: Sentinel is a SIEM for threat detection.
Microsoft Purview Information Protection with auto-labeling
Auto-labeling can classify and protect sensitive data automatically.
Microsoft Defender for Cloud Apps
Why wrong: Defender for Cloud Apps provides cloud access security, not document classification.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Purview Information Protection with auto-labeling
Microsoft Purview Information Protection with auto-labeling is the correct solution because it uses trainable classifiers or exact data match (EDM) to detect sensitive data types like credit card numbers, automatically apply a 'Highly Confidential' sensitivity label, and enforce encryption when the document is shared externally. This capability is built into Microsoft 365 compliance center and integrates with sensitivity labels to protect data at rest and in transit.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Microsoft Intune
Why it's wrong here
Intune is for mobile device management.
Microsoft Sentinel
Why it's wrong here
Sentinel is a SIEM for threat detection.
Microsoft Purview Information Protection with auto-labeling
Why this is correct
Auto-labeling can classify and protect sensitive data automatically.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Defender for Cloud Apps
Why it's wrong here
Defender for Cloud Apps provides cloud access security, not document classification.
Common exam traps
The trap here is that candidates confuse Microsoft Defender for Cloud Apps (a CASB) with Purview's auto-labeling, assuming a CASB can classify and encrypt content natively, when in fact it only applies labels that are already defined and managed by Purview Information Protection.
Detailed technical explanation
Under the hood, Microsoft Purview auto-labeling uses the Microsoft 365 compliance center's data classification service, which scans content using built-in sensitive information types (e.g., credit card number regex matching the Luhn algorithm) and applies a sensitivity label via the Azure Information Protection unified labeling client or native labeling in Office apps. A subtle behavior is that auto-labeling can be configured for files at rest (in SharePoint, OneDrive) or during creation (in Office apps), and encryption is enforced by the label's protection settings, which use Azure Rights Management (RMS) to apply AES-256 encryption.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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FAQ
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Purview Information Protection with auto-labeling — Microsoft Purview Information Protection with auto-labeling is the correct solution because it uses trainable classifiers or exact data match (EDM) to detect sensitive data types like credit card numbers, automatically apply a 'Highly Confidential' sensitivity label, and enforce encryption when the document is shared externally. This capability is built into Microsoft 365 compliance center and integrates with sensitivity labels to protect data at rest and in transit.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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