mediumMultiple Choice
MS-900 Practice Question: A company with 100 users wants to provide all…
A company with 100 users wants to provide all users with Microsoft Teams and cloud file storage, but only the sales team of 20 users needs access to Dynamics 365. Which licensing approach is most cost-effective?
⚠ Common exam trap
MS-900 often tests the confusion between Dynamics 365 Sales (CRM) and Dynamics 365 Business Central (ERP), and candidates frequently pick Business Central thinking it is the general-purpose Dynamics product for any business need.
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 Business Basic for all 100 users and Dynamics 365 Sales Professional for the 20 sales users.
Microsoft 365 Business Basic provides Teams and cloud file storage (SharePoint/OneDrive) for all 100 users at the lowest per-user cost, and Dynamics 365 Sales Professional is the correct Dynamics SKU for a sales team needing CRM functionality. This combination matches each user's actual needs without paying for capabilities they will not use. It is the most cost-effective approach because licensing is scoped to the smallest sufficient SKU per user group.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Purchase Microsoft 365 Business Basic for all 100 users and Dynamics 365 Sales Professional for the 20 sales users.
Why this is correct
Microsoft 365 Business Basic provides the necessary cloud productivity foundation—Exchange Online email, Teams, and SharePoint—for all 100 employees at a low per-user cost. Dynamics 365 Sales Professional is a separate, per-user CRM license required only for the 20 sales representatives who need opportunity and pipeline management. This hybrid licensing approach ensures every user is appropriately licensed without paying for capabilities that non-sales staff do not consume.
- ✗
Purchase Microsoft 365 Business Premium for all 100 users.
Why it's wrong here
Microsoft 365 Business Premium bundles advanced endpoint management via Microsoft Intune and Microsoft Entra ID Premium P1 identity features that non-sales employees may not need, making it significantly more expensive than Business Basic for the same core communication tools. Moreover, Business Premium still does not include Dynamics 365 Sales, so the 20 sales users would need an additional Dynamics 365 license regardless. Thus this plan overspends by over-licensing all 100 users and still fails to cover the CRM requirement.
- ✗
Purchase Microsoft 365 E3 for all 100 users and add Dynamics 365 for the sales team.
Why it's wrong here
Microsoft 365 E3 is an enterprise-grade suite that introduces advanced compliance, eDiscovery, and Windows 10/11 Enterprise features far beyond the collaboration needs of a 100-user company, and it costs substantially more than Business Basic. The option also fails to specify a Dynamics 365 product, but even if Dynamics 365 Sales Professional is added for the sales team, the extra E3 expense for all users offers no advantage over Business Basic for this scenario. Efficient licensing requires matching the base plan to the majority's needs and adding only the sales CRM for those who use it.
- ✗
Purchase Microsoft 365 Business Basic for all users and Dynamics 365 Business Central for the 20 sales users.
Why it's wrong here
Dynamics 365 Business Central is an enterprise resource planning (ERP) solution designed for finance, supply chain, and operations, not for managing sales pipelines or customer relationships. The 20 sales users require Dynamics 365 Sales, which provides lead and opportunity tracking; Business Central would force them into an accounting-centric workflow without delivering the required CRM capabilities. Additionally, Business Central licensing is typically allocated based on operational roles, making it an inappropriate and potentially costlier choice for a sales-focused team.
Go deeper
Related to this question
Learn chapter
Cloud Service Types for MS-900
Key term
Microsoft Teams
Microsoft Teams is a collaboration platform that integrates chat, video meetings, file storage, and application integration into a single workspace, primarily used within the Microsoft 365 ecosystem.
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.
About these practice questions
This MS-900 question is part of Courseiva's 794-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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.