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MS-900 Practice Question: A startup with 25 employees needs business-grade…
A startup with 25 employees needs business-grade email (50 GB mailbox per user), web versions of Office apps, and 1 TB of cloud storage per user. They do not need the desktop versions of Office or advanced security features. Which Microsoft 365 plan is the most cost-effective choice?
⚠ Common exam trap
Many exam-takers confuse 'web versions of Office apps' with 'desktop versions' and select Business Standard, or they assume that business-grade email requires a higher-tier plan like Business Premium, when in fact Business Basic includes Exchange Online mailboxes.
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 provides business-grade email with 50 GB mailboxes, web versions of Office apps (Word, Excel, PowerPoint, etc.), and 1 TB of cloud storage per user via OneDrive for Business. Since the startup does not need desktop Office apps or advanced security features, this plan meets all stated requirements at the lowest cost.
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
Why this is correct
Microsoft 365 Business Basic provides a 50 GB Exchange Online mailbox for business email, web and mobile versions of Office apps, and 1 TB OneDrive storage per user. It matches every stated requirement (business-grade email and 50 GB capacity) at the lowest available subscription price for this plan family. Desktop Office apps are not included, but they were not required by the startup, so this is the correct, cost-optimal plan.
- ✗
Microsoft 365 Business Standard
Why it's wrong here
Microsoft 365 Business Standard bundles everything in Business Basic and additionally provides fully installed desktop Office applications such as Word, Excel, PowerPoint, and the Outlook client. For a 25-employee startup whose only stated need is business email with 50 GB mailboxes, this plan adds approximately $12 per user per month over Business Basic without satisfying any additional requirement. Because the desktop apps are not part of the startup's needs, choosing Standard needlessly increases cost.
- ✗
Microsoft 365 Business Premium
Why it's wrong here
Microsoft 365 Business Premium includes all Business Standard capabilities and layers on advanced security, including Microsoft Intune for device management, Azure AD conditional access, and Defender for Office 365 threat protection. This plan addresses enterprise-level identity, compliance, and endpoint management scenarios that a 25-person startup requiring only email does not need. It is also the most expensive of the Business plans, so selecting it would significantly inflate licensing costs beyond the stated email requirement.
- ✗
Microsoft 365 Apps for business
Why it's wrong here
Microsoft 365 Apps for business licenses the desktop Office suite (Outlook, Word, Excel, PowerPoint) and 1 TB of OneDrive storage, but it does not include Exchange Online, so no hosted 50 GB business mailbox is provided. While the Outlook application is installed, it can only connect to an external email service, not a Microsoft-hosted mailbox under this plan. Because business-grade email is mandatory for the startup, this plan fails the core requirement even though it satisfies storage and app needs.
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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.
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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.