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MS-900 Microsoft 365 Business Premium Practice Question
A mid-size company with 300 users currently has Microsoft 365 Business Basic licenses. They need to add desktop versions of Office apps (Word, Excel, PowerPoint) and advanced security features such as Microsoft Defender for Office 365. What is the most cost-effective licensing upgrade?
⚠ Common exam trap
Test-takers frequently assume Microsoft 365 Business Standard is sufficient because it includes desktop Office apps, overlooking that Microsoft Defender for Office 365 is a separate security feature not included in that plan, and that Business Premium is the most cost-effective bundle for both requirements.
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
✓
Microsoft 365 Business Premium
Microsoft 365 Business Premium includes both the desktop versions of Office apps (Word, Excel, PowerPoint) and Microsoft Defender for Office 365 (Plan 1) in a single license. This makes it the most cost-effective upgrade from Business Basic because it bundles the required productivity and security features without the higher per-user cost of E3 or E5.
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 Business Standard
Why it's wrong here
Business Standard supplies the desktop Office apps but omits Defender for Office 365, so the advanced security requirement remains unmet. It is the correct upgrade when an organisation needs only installed Office applications and no additional threat protection beyond the baseline Exchange Online Protection included with Business Basic.
- ✓
Microsoft 365 Business Premium
Why this is correct
Microsoft 365 Business Premium is the lowest tier bundling desktop Office apps plus Defender for Office 365, satisfying both requirements. Business Standard adds desktop apps but lacks the advanced security features, so upgrading to Premium avoids paying for separate Defender licences.
- ✗
Microsoft 365 E3
Why it's wrong here
Microsoft 365 E3 includes desktop Office and Defender for Office 365 Plan 2, but its per-user cost exceeds the Business Premium tier that delivers the same two capabilities at 300 seats. E3 becomes the right choice once enterprise features such as Windows 11 Enterprise and advanced compliance are required.
- ✗
Microsoft 365 E5
Why it's wrong here
Microsoft 365 E5 includes the required desktop apps and Defender for Office 365, but bundles many extra capabilities the 300-user company does not need, so it costs far more than necessary. It is tempting as the most feature-complete tier, yet a lower SKU already satisfies both stated requirements.
Go deeper
Related to this question
Learn chapter
Microsoft 365 Frontline Worker Features
Key term
Microsoft Defender
Microsoft Defender is a suite of security products that protects devices, data, and identities from cyber threats like malware, phishing, and unauthorized access.
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
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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.