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MS-900 Practice Question: A non-profit organization with 100 users needs…
A non-profit organization with 100 users needs business-grade email, desktop versions of Office apps (Word, Excel, PowerPoint), and 1 TB of cloud storage per user. They are eligible for non-profit pricing. Which Microsoft 365 plan meets these requirements at the lowest cost?
⚠ Common exam trap
A common mix-up: candidates confuse 'Business Basic' as sufficient because it includes email and cloud storage, forgetting that desktop Office apps are a separate, higher-tier requirement, or they over-select 'Business Premium' or 'E3' thinking more features are always better for nonprofits.
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 Standard (Nonprofit)
Microsoft 365 Business Standard (Nonprofit) is the lowest-cost plan that includes business-grade email (Exchange Online), desktop versions of Office apps (Word, Excel, PowerPoint), and 1 TB of cloud storage per user (OneDrive for Business). Microsoft 365 Business Basic (Nonprofit) lacks the desktop Office apps, while Business Premium and E3 include additional security and compliance features that increase cost beyond the stated requirements.
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 Basic (Nonprofit)
Why it's wrong here
This plan provides web-based versions of Outlook, Word, Excel, and PowerPoint, along with email and Teams, but it does not include the fully installed desktop Office applications. Since the organization needs business productivity software, the lack of thick client apps means users cannot work offline or access all advanced features. It is less expensive than Business Standard, but it fails to meet the stated requirement for desktop apps, making it an incorrect choice.
- ✓
Microsoft 365 Business Standard (Nonprofit)
Why this is correct
This subscription includes the full desktop Office suite, business-grade email with a 50 GB mailbox, 1 TB of OneDrive storage per user, and Teams, all at the discounted nonprofit pricing. For an organization with 100 users that simply needs reliable business productivity tools, this plan delivers the necessary installed applications and collaboration capabilities without paying for advanced security or compliance extras. It aligns directly with the core requirement and is the most cost-effective eligible option.
- ✗
Microsoft 365 Business Premium (Nonprofit)
Why it's wrong here
Business Premium bundles everything in Business Standard but also includes advanced security features such as Microsoft Intune device management, Azure Active Directory Premium P1, and Microsoft Defender for Office 365. While these tools are valuable in larger or highly regulated environments, a nonprofit with 100 users focused only on business productivity does not need them. This plan would introduce unnecessary administrative overhead and a significantly higher per-user cost, making it an overprovisioned and incorrect solution.
- ✗
Microsoft 365 E3 (Nonprofit)
Why it's wrong here
The E3 plan is part of the enterprise suite, providing legacy Office applications, Exchange Online, and SharePoint, but it also adds comprehensive compliance, eDiscovery, and Power BI analytics capabilities that go far beyond basic business needs. It is designed for large enterprises with advanced regulatory and data-governance requirements, and its per-user price is notably higher than that of Business Standard. For a 100-user nonprofit needing only standard business tools, E3 is an unnecessarily expensive and complex option that does not represent the right value.
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Cloud Service Types for MS-900
Key term
OneDrive for Business
OneDrive for Business is a cloud-based file storage and synchronization service from Microsoft, part of Microsoft 365, that lets users store, access, and share work files securely from anywhere.
Key term
Exchange Online
Exchange Online is Microsoft's cloud-based email, calendar, and contact hosting service that is part of the Microsoft 365 suite, allowing organizations to manage corporate messaging without maintaining their own mail servers.
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Written by Johnson Ajibi, MSc IT Security
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