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MS-900 Practice Question: A non-profit organization with 200 employees…

A non-profit organization with 200 employees needs to equip their staff with Microsoft 365 Business Premium, which includes desktop Office apps, Microsoft Intune, Microsoft Entra ID Premium P1, and Microsoft Defender for Office 365 Plan 1. They are eligible for non-profit pricing. What is the most cost-effective way to obtain these capabilities?

⚠ Common exam trap

Watch out — candidates often assume a lower-tier plan like Business Standard or Basic plus add-ons is cheaper, but they overlook that the bundled Business Premium license includes all required services at a discounted non-profit rate, making it the most cost-effective single SKU.

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 (non-profit pricing)

Microsoft 365 Business Premium (non-profit pricing) is the most cost-effective option because it bundles all required capabilities—desktop Office apps, Microsoft Intune, Microsoft Entra ID Premium P1, and Microsoft Defender for Office 365 Plan 1—into a single per-user license at a significantly reduced non-profit rate. Purchasing separate add-ons or a higher-tier plan like E3 would incur unnecessary costs without providing additional needed features.

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 Premium (non-profit pricing)

    Why this is correct

    Business Premium bundles the full Office suite (desktop and online apps), Exchange Online, SharePoint, Teams, plus Microsoft Intune, Microsoft Entra ID P1, and Defender for Office 365 Plan 1. For a 200-employee nonprofit, this single subscription addresses all productivity, identity, security, and mobile device management needs without separate add-ons, and nonprofit pricing provides a significant discount. It is the most efficient and cost-effective option compared to assembling components.

  • ✗

    Microsoft 365 Business Basic (non-profit) plus separate add-ons for Intune and Defender for Office 365

    Why it's wrong here

    Business Basic delivers only web-based and mobile versions of Office apps, so employees would lack the full desktop Office clients essential for many workflows. To gain security and device management, you would need to license Microsoft Intune and Defender for Office 365 separately, which not only adds per-user costs but also creates administrative burden in provisioning and compliance. The combined price typically exceeds Business Premium, making this approach both inferior and more expensive.

  • ✗

    Microsoft 365 E3 (non-profit pricing)

    Why it's wrong here

    E3 is an enterprise-grade suite that includes advanced compliance tools, eDiscovery, information governance, and Power BI Pro, which go far beyond the requirements of a 200-person nonprofit. While nonprofits receive discounted pricing, E3 remains pricier per user than Business Premium, and it still lacks Defender for Office 365 Plan 1 unless you add an extra subscription. Choosing E3 would mean paying for unnecessary features while failing to include all required security components.

  • ✗

    Microsoft 365 Business Standard (non-profit) plus add-ons for Intune and Defender for Office 365

    Why it's wrong here

    Business Standard includes desktop Office applications and fundamental collaboration services, but it has no built-in mobile device management or advanced threat protection. Adding Intune and Defender for Office 365 as separate subscriptions increases the total per-user license cost and requires individual assignment and management across the tenant, which is more cumbersome than the integrated security in Business Premium. The resulting bundle costs more while providing the same or fewer benefits.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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