- A
Sensitivity labels
Correct. Sensitivity labels classify and protect data.
- B
Auto-labeling policies
Correct. Auto-labeling policies automatically apply labels based on conditions.
- C
Retention policies
Why wrong: Incorrect. Retention policies manage retention and deletion, not classification.
- D
eDiscovery
Why wrong: Incorrect. eDiscovery is for searching content, not classification.
- E
Data Loss Prevention (DLP) policies
Correct. DLP policies detect and prevent sharing of sensitive data.
MS-900 Describe Microsoft 365 apps and services Practice Question
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 E5. They want to implement a solution to automatically classify and protect sensitive data in emails and documents. Which THREE Microsoft Purview features should they use?
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 allow organizations to classify and protect sensitive data by applying encryption, markings, and access restrictions directly to emails and documents. Auto-labeling policies extend this by automatically applying sensitivity labels based on conditions like sensitive information types or patterns, ensuring consistent protection without manual user intervention. Data Loss Prevention (DLP) policies are correct because they detect and prevent accidental sharing of sensitive data by enforcing rules on email and document transmission, such as blocking or warning when sensitive content is detected.
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
Correct. Sensitivity labels classify and protect data.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Auto-labeling policies
Why this is correct
Correct. Auto-labeling policies automatically apply labels based on conditions.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Retention policies
Why it's wrong here
Incorrect. Retention policies manage retention and deletion, not classification.
- ✗
eDiscovery
Why it's wrong here
Incorrect. eDiscovery is for searching content, not classification.
- ✓
Data Loss Prevention (DLP) policies
Why this is correct
Correct. DLP policies detect and prevent sharing of sensitive data.
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 retention policies (which manage data retention and deletion) with data classification and protection features, leading them to incorrectly select retention policies as a solution for automatically classifying and protecting sensitive data.
Detailed technical explanation
How to think about this question
Under the hood, sensitivity labels use Azure Information Protection (AIP) to apply encryption via Azure Rights Management (RMS), which enforces usage restrictions like 'Do Not Forward' or 'View Only' at the file level. Auto-labeling policies can be configured as client-side (applied by Office apps) or service-side (applied by Exchange, SharePoint, or OneDrive), with service-side auto-labeling scanning content at rest without requiring user interaction. DLP policies in Microsoft 365 integrate with Exchange Online, SharePoint, and OneDrive to inspect content using sensitive information types (e.g., credit card numbers via regex) and can trigger actions like blocking email transmission or notifying users with policy tips.
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.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — 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 allow organizations to classify and protect sensitive data by applying encryption, markings, and access restrictions directly to emails and documents. Auto-labeling policies extend this by automatically applying sensitivity labels based on conditions like sensitive information types or patterns, ensuring consistent protection without manual user intervention. Data Loss Prevention (DLP) policies are correct because they detect and prevent accidental sharing of sensitive data by enforcing rules on email and document transmission, such as blocking or warning when sensitive content is detected.
What should I do if I get this MS-900 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.
About these practice questions
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Last reviewed: Jun 24, 2026
This MS-900 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-900 exam.
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