MS-900 Describe Microsoft 365 apps and services Practice Question
A sales team needs a centralized repository for customer proposals that multiple team members can edit simultaneously and that maintains version history. Which Microsoft 365 service should they use?
⚠ Common exam trap
It's easy for candidates to confuse Microsoft Teams as the file storage solution, but Teams relies on SharePoint Online for its Files tab, so the underlying service providing version history and simultaneous editing is SharePoint Online, not Teams itself.
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
✓
SharePoint Online
SharePoint Online is the correct choice because it provides a centralized document library where multiple users can co-author documents simultaneously, with built-in version history to track changes over time. This aligns directly with the requirement for a shared repository with real-time collaboration and versioning, which OneDrive for Business lacks for team-wide access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
OneDrive for Business
Why it's wrong here
OneDrive for Business is a personal cloud storage service tied to an individual user's license, and its sharing model relies on granting access to folders or files from that user's personal library. While it does offer co-authoring and basic version history, it lacks the site-level membership, metadata, and document governance capabilities that SharePoint Online brings to a shared team repository. It is therefore appropriate for personal scratch space or sharing files with smaller groups, not as a central store for a sales team's collective customer data.
- ✓
SharePoint Online
Why this is correct
SharePoint Online is the correct choice because it provides team-specific document libraries with granular permission controls, content types, and managed metadata that support a shared repository. Multiple users can co-author the same document simultaneously while version history records every change, and workflows or retention policies can be applied at the site or library level. For a centralized customer repository, SharePoint gives the sales team a governed, collaborative home rather than a personal drive or a communication tool.
- ✗
Microsoft Teams
Why it's wrong here
Microsoft Teams is a collaboration hub that layers chat, meetings, and channels on top of the underlying Microsoft 365 content services; the Files tab in a channel is actually a view of a SharePoint Online document library. Because Teams does not provide its own storage engine, it cannot be considered the centralized repository itself. The team's files rely on SharePoint for co-authoring and version history, so Teams is the user-facing interface, not the storage service.
- ✗
Exchange Online
Why it's wrong here
Exchange Online is the Microsoft 365 messaging component, responsible for email, calendar, contacts, and mailbox rules; its data store is not designed for document-centric collaboration. Although attachments can be sent via email, there is no centralized versioning, check-in/check-out, or multi-user co-authoring for files stored in an Exchange mailbox. Therefore, it fails as a repository for shared customer documents and adds no collaborative value in this scenario.
Go deeper
Related to this question
Learn chapter
Cloud Service Types for MS-900
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.
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.
About these practice questions
Courseiva writes every MS-900 question from scratch — 217 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
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.