hardMultiple ChoiceObjective-mapped
MS-900 Practice Question: A company with 100 Microsoft 365 Business Premium…
A company with 100 Microsoft 365 Business Premium users needs to add advanced compliance features: eDiscovery (Premium) and Communication Compliance. They want to keep their existing Business Premium subscriptions to retain current capabilities. What is the most cost-effective licensing approach?
⚠ Common exam trap
Watch out — candidates often assume they must upgrade to a full E5 license to get advanced compliance features, overlooking the existence of targeted add-ons like Microsoft 365 E5 Compliance that can be layered onto existing Business Premium subscriptions.
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
✓
Purchase Microsoft 365 E5 Compliance add-on for all 100 users
Microsoft 365 Business Premium already includes the base compliance features, and the Microsoft 365 E5 Compliance add-on provides the advanced capabilities (eDiscovery Premium and Communication Compliance) without requiring a full license upgrade. This add-on is the most cost-effective approach as it adds only the needed compliance features to existing Business Premium subscriptions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Upgrade all 100 users from Business Premium to Microsoft 365 E5
Why it's wrong here
Upgrading all 100 users from Microsoft 365 Business Premium to Microsoft 365 E5 replaces the entire base license with a far broader and more expensive suite. Business Premium already includes Office apps, email, Teams, and Defender for Business, so moving to E5 would add advanced compliance, analytics, and security features that are not needed for this requirement. This results in unnecessary per-user licensing costs and administrative overhead, whereas a targeted add-on can supply only the missing compliance capabilities.
- ✓
Purchase Microsoft 365 E5 Compliance add-on for all 100 users
Why this is correct
Microsoft 365 E5 Compliance is an officially supported add-on that can be purchased on top of Microsoft 365 Business Premium to close specific compliance gaps. It provides eDiscovery (Premium), Communication Compliance, and other advanced compliance tools without requiring users to change their base license. This is the most cost-effective option because only the missing functionality is added, and assigning it to all 100 users exactly matches the stated business need.
- ✗
Purchase Microsoft 365 E5 eDiscovery and Audit add-on
Why it's wrong here
There is no Microsoft 365 product named 'eDiscovery and Audit add-on.' eDiscovery (Premium) and Advanced Audit are both included within the Microsoft 365 E5 Compliance add-on, but they cannot be purchased separately under that name. Furthermore, a hypothetical eDiscovery-only SKU would still not cover the Communication Compliance requirement, so this option is both non-existent and functionally incomplete.
- ✗
Purchase Microsoft 365 E5 Compliance and Information Protection add-on
Why it's wrong here
Microsoft 365 E5 Compliance and Information Protection is not an official add-on SKU; the correct product name is simply 'Microsoft 365 E5 Compliance.' While information protection and compliance capabilities are related, combining them into an invented title could lead to mis-provisioning and inaccurate license assignment. To satisfy the stated requirement, administrators should choose the legitimate add-on that contains eDiscovery (Premium) and Communication Compliance rather than a fictitious bundle.
Go deeper
Related to this question
Learn chapter
Benefits of Microsoft Cloud
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
eDiscovery
eDiscovery is the process of identifying, collecting, and producing electronic information for legal cases or investigations.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.