MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support
This MS-900 practice question tests your understanding of describe microsoft 365 pricing, licensing, 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 users is planning to adopt Microsoft 365. They need to ensure that all users have access to Microsoft Teams, Exchange Online, and SharePoint Online, as well as the latest desktop versions of Office apps. They also require advanced compliance features such as litigation hold and eDiscovery. Which Microsoft 365 licensing plan best meets these requirements?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft 365 E3
Microsoft 365 E3 is the correct choice because it includes all required services: Microsoft Teams, Exchange Online, SharePoint Online, and the latest desktop versions of Office apps (Office 365 ProPlus). It also provides advanced compliance features such as litigation hold and eDiscovery (via the Microsoft Purview compliance portal), which are not available in lower-tier plans like Business Basic or Business Premium.
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.
✓
Microsoft 365 E3
Why this is correct
E3 includes desktop apps, core services, and compliance capabilities like litigation hold and eDiscovery.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Microsoft 365 Business Basic
Why it's wrong here
Business Basic does not include desktop Office apps and has limited compliance features.
✗
Microsoft 365 Business Premium
Why it's wrong here
Business Premium is limited to 300 users and may not meet compliance needs for litigation hold at scale.
✗
Microsoft 365 E5
Why it's wrong here
E5 includes advanced security and analytics which are not required by the scenario.
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 E3, assuming Business Premium includes all E3 features for smaller organizations, but Business Premium has a 300-user limit and lacks the full advanced compliance and eDiscovery capabilities of E3, making it unsuitable for a 500-user company with specific compliance needs.
Trap categories for this question
Scenario analysis trap
E5 includes advanced security and analytics which are not required by the scenario.
Detailed technical explanation
How to think about this question
Under the hood, litigation hold in Microsoft 365 E3 leverages the Exchange Online mailbox hold and SharePoint preservation hold library, which are enforced via the Microsoft Purview compliance portal using eDiscovery cases. The E3 plan also includes the full Office 365 ProPlus suite with Click-to-Run deployment, allowing for volume licensing and Group Policy management, whereas Business Premium uses a different licensing model with a 300-user cap and lacks the unified audit log retention for advanced eDiscovery searches that E3 provides.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
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, licensing, and support — This question tests Describe Microsoft 365 pricing, licensing, and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Microsoft 365 E3 — Microsoft 365 E3 is the correct choice because it includes all required services: Microsoft Teams, Exchange Online, SharePoint Online, and the latest desktop versions of Office apps (Office 365 ProPlus). It also provides advanced compliance features such as litigation hold and eDiscovery (via the Microsoft Purview compliance portal), which are not available in lower-tier plans like Business Basic or Business Premium.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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