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MS-900 Practice Question: A non-profit organization with 150 employees…
A non-profit organization with 150 employees needs business-grade email, online and desktop versions of Office apps, 1 TB cloud storage per user, and the ability to manage user permissions on mobile devices. They are eligible for non-profit licensing. Which plan should they choose to meet all requirements most cost-effectively?
⚠ Common exam trap
It's easy for candidates to confuse Business Standard (which has desktop apps but no MDM) with Business Premium (which adds MDM), or assume E3 is necessary for mobile device management when Business Premium already includes Intune at a lower cost.
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 (Nonprofit)
Microsoft 365 Business Premium (Nonprofit) is the correct choice because it includes business-grade email (Exchange Online), desktop and online Office apps, 1 TB OneDrive storage per user, and Microsoft Intune for mobile device management (MDM) to manage user permissions on mobile devices. This plan provides all required capabilities at the lowest cost among options that include desktop apps and MDM, leveraging the nonprofit discount.
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
Microsoft 365 Business Basic is an entry-level plan that runs the Office apps (Word, Excel, PowerPoint) exclusively through a browser or on mobile devices, so users cannot install desktop clients. It also does not include Intune or Microsoft Entra ID Premium for endpoint enrollment and policy enforcement, meaning it cannot satisfy the organization's requirement for full productivity software and managed devices. Despite the low nonprofit price, the functional gaps are decisive.
- ✗
Microsoft 365 Business Standard (Nonprofit)
Why it's wrong here
Microsoft 365 Business Standard does add fully installed Office desktop apps and cloud storage via OneDrive and SharePoint, so basic file storage is covered. However, it lacks Microsoft Intune, Microsoft Entra ID P1, and Conditional Access capabilities, which are needed for genuine mobile device management and security compliance. Without these, the organization's phones, tablets, and laptops cannot be centrally enrolled or have policy-driven access controls enforced, leaving the device management requirement unmet.
- ✓
Microsoft 365 Business Premium (Nonprofit)
Why this is correct
Microsoft 365 Business Premium combines the full desktop and mobile Office apps with cloud storage and extends them with Microsoft Intune, Microsoft Entra ID P1, and Microsoft Defender for Business. This gives all 150 users advanced device management, identity-based conditional access, and integrated threat protection while still being licensed under the Business-family model intended for organizations under 300 seats. For a nonprofit, it delivers the specified productivity, storage, and security requirements without the unnecessary compliance depth or higher cost of enterprise-grade plans.
- ✗
Microsoft 365 E3 (Nonprofit)
Why it's wrong here
Microsoft 365 E3 is an enterprise-scale licensing tier that includes Office desktop apps, cloud storage, and additional compliance capabilities such as eDiscovery, legal hold, and information protection. While it technically covers all the stated needs, it is notably more expensive than Business Premium per user and introduces complexity, such as advanced compliance features and larger licensing commitment, that a 150-person nonprofit does not need. Choosing E3 would violate right-sizing principles by paying for capabilities beyond the stated business requirements.
Go deeper
Related to this question
Learn chapter
Microsoft 365 Message Centre and Change Management
Key term
Microsoft Intune
Microsoft Intune is a cloud-based service that helps organizations manage employee devices, apps, and security policies without needing to own or control the physical hardware.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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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.