- A
Microsoft 365 Business Premium
Business Premium is the direct upgrade from Business Standard that adds the required security and compliance features while maintaining the same business-oriented licensing model. It is the most cost-effective choice for this scenario.
- B
Microsoft 365 E3
Why wrong: Microsoft 365 E3 also includes the needed security and compliance features, but it is an enterprise plan that may include additional capabilities not required. Business Premium is the appropriate upgrade for a business with 100 users.
- C
Microsoft 365 F3
Why wrong: F3 is a low-cost plan for frontline workers and does not include desktop Office, advanced security, or compliance tools. It is not suitable for this upgrade.
- D
Office 365 E1
Why wrong: Office 365 E1 includes only web and mobile versions of Office and limited security features. It does not provide conditional access, Defender for Office 365, or litigation hold/eDiscovery capabilities.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing and support. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. A key principle to apply: microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.. 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 with 100 users currently has Microsoft 365 Business Standard. The IT department wants to add governance-level security features, including conditional access policies, Microsoft Defender for Office 365, and compliance tools like litigation hold and eDiscovery. Which licensing upgrade should they consider?
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
Microsoft 365 Business Premium
Microsoft 365 Business Premium is the correct upgrade because it includes all the governance-level security features requested: Conditional Access (via Azure AD P1), Microsoft Defender for Office 365 (Plan 1), and compliance tools like litigation hold and eDiscovery (via the Microsoft Purview compliance portal). This SKU is designed for organizations with up to 300 users that need enterprise-grade security and compliance on top of the Business Standard productivity apps.
Key principle: Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Microsoft 365 Business Premium
Why this is correct
Business Premium is the direct upgrade from Business Standard that adds the required security and compliance features while maintaining the same business-oriented licensing model. It is the most cost-effective choice for this scenario.
Related concept
Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.
- ✗
Microsoft 365 E3
Why it's wrong here
Microsoft 365 E3 also includes the needed security and compliance features, but it is an enterprise plan that may include additional capabilities not required. Business Premium is the appropriate upgrade for a business with 100 users.
- ✗
Microsoft 365 F3
Why it's wrong here
F3 is a low-cost plan for frontline workers and does not include desktop Office, advanced security, or compliance tools. It is not suitable for this upgrade.
- ✗
Office 365 E1
Why it's wrong here
Office 365 E1 includes only web and mobile versions of Office and limited security features. It does not provide conditional access, Defender for Office 365, or litigation hold/eDiscovery capabilities.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Microsoft 365 Business Premium with Microsoft 365 E3, assuming E3 is always superior, but Business Premium actually bundles Defender for Office 365 and Azure AD P1 at a lower cost for sub-300-user organizations, while E3 requires separate add-ons for those security features.
Detailed technical explanation
How to think about this question
Conditional Access policies in Business Premium leverage Azure AD P1, allowing IT to enforce MFA, device compliance, and location-based access controls. Microsoft Defender for Office 365 Plan 1 provides Safe Links and Safe Attachments for email and SharePoint, which are critical for phishing defense. Litigation hold and eDiscovery rely on the Microsoft Purview compliance portal, where holds can be placed on Exchange Online mailboxes and SharePoint sites to preserve content for legal cases, with eDiscovery searches spanning all Microsoft 365 workloads.
KKey Concepts to Remember
- Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.
- Microsoft Defender for Office 365 Plan 1 is part of Business Premium for advanced threat protection.
- Business Premium provides compliance features like litigation hold and eDiscovery.
- It is designed for SMBs, typically up to 300 users, offering a cost-effective upgrade path.
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
Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.
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.
Review microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access., then practise related MS-900 questions on the same topic to reinforce the concept.
- →
Describe Microsoft 365 pricing and support — study guide chapter
Learn the concepts, then practise the questions
- →
Describe Microsoft 365 pricing and support practice questions
Targeted practice on this topic area only
- →
All MS-900 questions
985 questions across all exam domains
- →
Microsoft 365 Fundamentals MS-900 study guide
Full concept coverage aligned to exam objectives
- →
MS-900 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related MS-900 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Describe Microsoft 365 apps and services practice questions
Practise MS-900 questions linked to Describe Microsoft 365 apps and services.
Describe Microsoft 365 pricing, licensing, and support practice questions
Practise MS-900 questions linked to Describe Microsoft 365 pricing, licensing, and support.
Describe cloud concepts practice questions
Practise MS-900 questions linked to Describe cloud concepts.
Describe security, compliance, privacy, and trust in Microsoft 365 practice questions
Practise MS-900 questions linked to Describe security, compliance, privacy, and trust in Microsoft 365.
Describe Microsoft 365 pricing and support practice questions
Practise MS-900 questions linked to Describe Microsoft 365 pricing and support.
MS-900 fundamentals practice questions
Practise MS-900 questions linked to MS-900 fundamentals.
MS-900 scenario practice questions
Practise MS-900 questions linked to MS-900 scenario.
MS-900 troubleshooting practice questions
Practise MS-900 questions linked to MS-900 troubleshooting.
Practice this exam
Start a free MS-900 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access..
What is the correct answer to this question?
The correct answer is: Microsoft 365 Business Premium — Microsoft 365 Business Premium is the correct upgrade because it includes all the governance-level security features requested: Conditional Access (via Azure AD P1), Microsoft Defender for Office 365 (Plan 1), and compliance tools like litigation hold and eDiscovery (via the Microsoft Purview compliance portal). This SKU is designed for organizations with up to 300 users that need enterprise-grade security and compliance on top of the Business Standard productivity apps.
What should I do if I get this MS-900 question wrong?
Review microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access., then practise related MS-900 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Microsoft 365 Business Premium includes Azure AD Premium P1 for Conditional Access.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Last reviewed: Jun 11, 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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.