- A
Microsoft 365 Business Premium
Why wrong: Premium includes desktop apps at a higher cost, not the most cost-effective if only web apps are needed.
- B
Microsoft 365 Business Basic
Business Basic provides email, web/mobile Office, and 1 TB storage at the lowest price point.
- C
Microsoft 365 E1
Why wrong: E1 is similar but typically more expensive for non-profits and may require volume licensing; Business Basic is simpler.
- D
Microsoft 365 Apps for Business
Why wrong: This includes only desktop apps, no email or web apps.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing 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 non-profit organization with 250 employees is considering Microsoft 365. They want the most cost-effective plan that includes business-class email, web and mobile versions of Office apps, and 1 TB of cloud storage per user. Which subscription should they choose?
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 Basic
Microsoft 365 Business Basic is the most cost-effective plan that includes business-class email (Exchange Online), web and mobile versions of Office apps, and 1 TB of OneDrive cloud storage per user. It meets all stated requirements without the higher cost of desktop app licenses or advanced security features found in other plans.
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.
- ✗
Microsoft 365 Business Premium
Why it's wrong here
Premium includes desktop apps at a higher cost, not the most cost-effective if only web apps are needed.
- ✓
Microsoft 365 Business Basic
Why this is correct
Business Basic provides email, web/mobile Office, and 1 TB storage at the lowest price point.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft 365 E1
Why it's wrong here
E1 is similar but typically more expensive for non-profits and may require volume licensing; Business Basic is simpler.
- ✗
Microsoft 365 Apps for Business
Why it's wrong here
This includes only desktop apps, no email or web apps.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume 'Business Basic' lacks email or cloud storage because of the word 'Basic', but it actually includes Exchange Online and 1 TB OneDrive, while 'Apps for Business' (which sounds more complete) omits email entirely.
Trap categories for this question
Similar concept trap
E1 is similar but typically more expensive for non-profits and may require volume licensing; Business Basic is simpler.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft 365 Business Basic provides Exchange Online Plan 1 (50 GB mailbox) and OneDrive for Business (1 TB per user), with Office for the web accessible via browser. For non-profits, Microsoft offers discounted pricing through the Microsoft 365 Nonprofit Business Basic plan, making it even more cost-effective. A real-world scenario: a non-profit with 250 employees using only web and mobile Office apps can avoid the per-user cost of desktop licenses, saving significant annual expense while still meeting collaboration needs.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Microsoft 365 Business Basic — Microsoft 365 Business Basic is the most cost-effective plan that includes business-class email (Exchange Online), web and mobile versions of Office apps, and 1 TB of OneDrive cloud storage per user. It meets all stated requirements without the higher cost of desktop app licenses or advanced security features found in other plans.
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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Last reviewed: Jun 11, 2026
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.
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