MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365
A compliance administrator needs to apply encryption and usage restrictions to confidential documents. Which Microsoft 365 capability is the best fit?
⚠ Common exam trap
Many candidates confuse the OneDrive sync client's ability to sync encrypted files with the ability to apply encryption itself, or they mistakenly think Microsoft Teams live events can restrict document usage because it is a 'live' feature with attendee controls.
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
✓
Sensitivity labels
Sensitivity labels from Microsoft Purview Information Protection are the correct choice because they allow the compliance administrator to apply both encryption and usage restrictions (such as 'Do Not Forward' or custom permissions) directly to confidential documents. This capability integrates with Microsoft 365 apps to enforce protection persistently, even when the document is shared outside the organization.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
OneDrive sync client
Why it's wrong here
The OneDrive sync client replicates files to endpoints but applies no encryption or usage restrictions; those come from sensitivity labels in Microsoft Purview. It is tempting because OneDrive does support per-file sharing limits, which would fit a scenario needing only access control on cloud-stored files, not persistent document-level protection.
- ✓
Sensitivity labels
Why this is correct
Sensitivity labels apply persistent encryption and usage restrictions that travel with the document, satisfying the compliance requirement. They enforce protection regardless of where the file is stored or shared, unlike retention or DLP policies alone.
- ✗
Microsoft Bookings
Why it's wrong here
Bookings schedules appointments and manages calendars; it applies no encryption or usage restrictions to documents. It is the right choice for customer-facing scheduling pages, whereas the requirement here maps to sensitivity labels and Microsoft Purview Information Protection.
- ✗
Microsoft Teams live events
Why it's wrong here
Teams live events broadcast video to large audiences and impose no encryption or usage restrictions on files. Live events suit town halls and webinars; document-level encryption and restriction require sensitivity labels from Microsoft Purview Information Protection.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.