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. 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 with 500 Microsoft 365 Business Premium users wants to enable advanced identity protection features, such as risk-based conditional access and privileged identity management (PIM). These features require Microsoft Entra ID Premium P2. What is the most cost-effective licensing approach to add this capability?
Why wrong: This is more expensive and provides many unnecessary features beyond identity protection.
B
Purchase Microsoft 365 E5 Security add-on
Why wrong: This add-on includes Microsoft Entra ID P2, but also includes other security features; the standalone Microsoft Entra ID P2 add-on is more cost-effective for identity-only.
C
Purchase Microsoft Entra ID Premium P2 as a standalone add-on
This directly adds the required identity protection capabilities to existing Business Premium licenses at the lowest cost.
D
Purchase Microsoft 365 E5 Compliance add-on
Why wrong: This add-on provides compliance features, not identity protection.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Purchase Microsoft Entra ID Premium P2 as a standalone add-on
Option C is correct because Microsoft Entra ID Premium P2 is the specific license that provides risk-based conditional access and Privileged Identity Management (PIM). Purchasing it as a standalone add-on for the existing Microsoft 365 Business Premium users is the most cost-effective approach, as it adds only the required identity protection features without upgrading the entire suite or purchasing unrelated add-ons.
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.
✗
Upgrade all users to Microsoft 365 E5
Why it's wrong here
This is more expensive and provides many unnecessary features beyond identity protection.
✗
Purchase Microsoft 365 E5 Security add-on
Why it's wrong here
This add-on includes Microsoft Entra ID P2, but also includes other security features; the standalone Microsoft Entra ID P2 add-on is more cost-effective for identity-only.
✓
Purchase Microsoft Entra ID Premium P2 as a standalone add-on
Why this is correct
This directly adds the required identity protection capabilities to existing Business Premium licenses at the lowest cost.
Related concept
Read the scenario before looking for a memorised answer.
✗
Purchase Microsoft 365 E5 Compliance add-on
Why it's wrong here
This add-on provides compliance features, not identity protection.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume the E5 Security add-on is the cheapest way to get Entra ID P2, but they overlook that the standalone Entra ID P2 add-on is more cost-effective when only identity features are needed, and they may confuse the E5 Compliance add-on as a source of identity protection.
Detailed technical explanation
How to think about this question
Microsoft Entra ID Premium P2 includes risk-based conditional access policies that leverage Identity Protection signals (e.g., leaked credentials, anonymous IP addresses) to enforce adaptive access controls, and PIM enables just-in-time privileged role activation with approval workflows. In a real-world scenario, a company with Business Premium can layer Entra ID P2 on top to get these advanced identity capabilities without migrating to E5, which would also require re-licensing Exchange Online, SharePoint, and Teams plans. The standalone add-on is billed per user per month, and it integrates directly with the existing tenant without requiring a base license change.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-900 question in full detail.
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Purchase Microsoft Entra ID Premium P2 as a standalone add-on — Option C is correct because Microsoft Entra ID Premium P2 is the specific license that provides risk-based conditional access and Privileged Identity Management (PIM). Purchasing it as a standalone add-on for the existing Microsoft 365 Business Premium users is the most cost-effective approach, as it adds only the required identity protection features without upgrading the entire suite or purchasing unrelated add-ons.
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.
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