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MS-900 Microsoft 365 Business Standard Practice Question
A company with 50 users currently has Microsoft 365 Business Basic licenses. They now need to use desktop versions of Office apps (Word, Excel, PowerPoint) for all users. They also want to keep their existing business email and online meeting features. What is the most cost-effective licensing strategy?
⚠ Common exam trap
Many candidates assume Microsoft 365 Apps for business is sufficient because it includes desktop Office, but they overlook that it lacks Exchange Online and Teams, which are required to maintain the existing email and meeting features.
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
✓
Upgrade all users to Microsoft 365 Business Standard
Microsoft 365 Business Basic includes only web and mobile versions of Office apps, not the desktop versions. Upgrading to Microsoft 365 Business Standard provides the full desktop Office suite (Word, Excel, PowerPoint) while retaining the existing business email (Exchange Online) and online meeting features (Teams), making it the most cost-effective option for 50 users.
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 users to Microsoft 365 Business Standard
Why this is correct
Business Standard adds desktop Office apps to the existing Business Basic email and online meeting features, so a single upgrade satisfies both requirements without buying separate licences. It is the most cost-effective path for all 50 users.
- ✗
Purchase Microsoft 365 Apps for business for all users
Why it's wrong here
Microsoft 365 Apps for business supplies the desktop Office applications but excludes Exchange Online and Teams, so users would lose the business email and online meeting features they must retain. It is tempting because it is the cheapest desktop-apps licence, but it is designed for organisations already holding separate email and collaboration services.
- ✗
Purchase Microsoft 365 E3 for all users
Why it's wrong here
Microsoft 365 E3 includes desktop Office apps plus email and meetings, but its per-user cost is far higher than Business Premium, which already covers all three requirements for a 50-user organisation. E3 is intended for enterprises needing advanced compliance, analytics, and Windows licensing, none of which the scenario requires.
- ✗
No change needed – Business Basic already includes desktop apps
Why it's wrong here
Microsoft 365 Business Basic provides web and mobile Office apps only; desktop Word, Excel, and PowerPoint installations require a licence tier that includes the desktop client, such as Business Standard or Business Premium. It is tempting because Business Basic already covers email and Teams, but it cannot satisfy the desktop-app requirement.
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Related to this question
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Microsoft Teams Phone and Calling Plans
Key term
Exchange Online
Exchange Online is Microsoft's cloud-based email, calendar, and contact hosting service that is part of the Microsoft 365 suite, allowing organizations to manage corporate messaging without maintaining their own mail servers.
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.
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Written by Johnson Ajibi, MSc IT Security
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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.