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 global organization with 20,000 users is migrating from on-premises Exchange to Exchange Online. They have a mix of Microsoft 365 E3 and E5 licenses. The compliance team requires that all mailboxes be placed on litigation hold within 24 hours of the migration. Which licensing consideration is critical?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Users with E3 licenses need an Exchange Online Plan 2 add-on for litigation hold
Litigation hold in Exchange Online requires an Exchange Online Plan 2 license or an Exchange Online Plan 1 license with the Exchange Online Archiving add-on. Microsoft 365 E3 includes Exchange Online Plan 1, which does not support litigation hold by itself. Therefore, users with E3 licenses need the Exchange Online Plan 2 add-on (or the equivalent Archiving add-on) to enable litigation hold. E5 licenses include Exchange Online Plan 2, so those users already have the necessary licensing.
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.
✗
All users must have Microsoft 365 E5 licenses to use litigation hold
Why it's wrong here
E3 users can use litigation hold if they have an Exchange Online Plan 2 add-on.
✗
Downgrade E5 users to E3 to simplify licensing
Why it's wrong here
This would remove litigation hold from E5 users unless add-ons are purchased.
✗
Litigation hold is automatically enabled for all mailboxes in Exchange Online
Why it's wrong here
Litigation hold must be explicitly enabled by an administrator.
✓
Users with E3 licenses need an Exchange Online Plan 2 add-on for litigation hold
Why this is correct
Exchange Online Plan 2 is required for litigation hold and can be added to E3.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume litigation hold is a standard feature available with any Exchange Online license, but Microsoft specifically requires Exchange Online Plan 2 (included in E5 or as an add-on to E3) for this capability.
Detailed technical explanation
How to think about this question
Litigation hold uses the In-Place Hold and Litigation Hold features in Exchange Online, which rely on the mailbox being in an Exchange Online Plan 2 or higher service plan. The hold places all mailbox content, including deleted items and versions, on indefinite retention. In a hybrid migration, the hold must be applied after the mailbox is moved to Exchange Online, and licensing must be assigned before or immediately after the migration to comply with the 24-hour requirement.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
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: Users with E3 licenses need an Exchange Online Plan 2 add-on for litigation hold — Litigation hold in Exchange Online requires an Exchange Online Plan 2 license or an Exchange Online Plan 1 license with the Exchange Online Archiving add-on. Microsoft 365 E3 includes Exchange Online Plan 1, which does not support litigation hold by itself. Therefore, users with E3 licenses need the Exchange Online Plan 2 add-on (or the equivalent Archiving add-on) to enable litigation hold. E5 licenses include Exchange Online Plan 2, so those users already have the necessary licensing.
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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Question Discussion
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