MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support
An organization is using Microsoft 365 Business Premium. They want to add Microsoft 365 Copilot for 10 users to enhance productivity with AI features. How should the administrator procure the Copilot licenses?
⚠ Common exam trap
Watch out — candidates often assume Copilot is included in higher-tier plans like E5 or that it can be purchased as a standalone product, but Microsoft requires it to be an add-on to a qualifying base subscription.
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
✓
Add Microsoft 365 Copilot as an add-on to the existing subscription
Microsoft 365 Copilot is available as an add-on to qualifying Microsoft 365 subscriptions, including Business Premium. This allows the administrator to license only the 10 users who need Copilot without changing the base subscription for all users. Option C correctly identifies this add-on licensing model.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase standalone Microsoft 365 Copilot licenses
Why it's wrong here
Microsoft 365 Copilot has never been sold as a standalone subscription; it is a per-user add-on that must attach to an eligible base plan, such as Microsoft 365 Business Premium. Purchasing standalone licenses would be impossible because there is no such SKU in the Microsoft 365 admin center or CSP catalog. Additionally, without an eligible base plan, Copilot would have no underlying services (Exchange, SharePoint, Teams) to contextualize against. Therefore, this option is not a valid acquisition path.
- ✗
Upgrade all users to Microsoft 365 E5 to get Copilot included
Why it's wrong here
Upgrading all users from Business Premium to Microsoft 365 E5 is a major operational and financial change, yet E5 does not include Microsoft 365 Copilot. Copilot is a separate add-on that still must be licensed on top of E5 or Business Premium. The E5 upgrade adds advanced security and analytics features, but those are unrelated to Copilot entitlement. Thus, moving to E5 alone would not grant Copilot and would incur unnecessary cost.
- ✓
Add Microsoft 365 Copilot as an add-on to the existing subscription
Why this is correct
The correct approach is to add Microsoft 365 Copilot as an add-on to the existing Business Premium subscription. Business Premium is an eligible base plan, and Copilot is licensed as a per-user add-on that can be assigned alongside the existing user licenses. This preserves the tenant's current licensing topology and avoids duplicate investments in other base plans. The add-on integrates directly with the Business Premium workload, enabling Copilot features across Word, Excel, PowerPoint, Outlook, and Teams.
- ✗
Purchase a new Microsoft 365 E3 subscription and add Copilot
Why it's wrong here
Purchasing a new Microsoft 365 E3 subscription and then adding Copilot would be redundant and cost-ineffective because the organization's existing Business Premium subscription already qualifies for the Copilot add-on. E3 would require the same per-user Copilot add-on license, and managing two separate base plans for the same group of users creates licensing overhead and potential duplicate assignment conflicts. The only way E3 would be justified is if the organization needed specific E3-only features, which is not part of the stated Copilot goal. Therefore, this is not a correct licensing solution.
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Microsoft Defender for Business
Key term
Subscription
A subscription is a payment model where you pay a recurring fee to access a product or service instead of buying it once and owning it forever.
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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Same concept, more angles
1 more way this is tested on MS-900
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO Microsoft 365 plans include Microsoft Copilot for Microsoft 365 as a built-in feature? (Choose 2)
easy- ✓ A.Microsoft 365 Business Premium
- B.Microsoft 365 E1
- C.Microsoft 365 Business Basic
- ✓ D.Microsoft 365 E5
- E.Microsoft 365 F3
Why A: Microsoft 365 Business Premium (option A) is correct because it is one of the SMB-tier plans that includes Microsoft Copilot for Microsoft 365 as a built-in feature, giving organizations with up to 300 users access to Copilot across Word, Excel, PowerPoint, Outlook, and Teams. Microsoft 365 E5 (option D) is also correct because it is the top enterprise plan that bundles Copilot for Microsoft 365 as part of its license, alongside advanced security, compliance, and analytics capabilities. The other options do not include Copilot as a built-in feature: Microsoft 365 E1 (B) is an entry-level enterprise plan without Copilot, Microsoft 365 Business Basic (C) is a web-and-mobile-only SMB plan without Copilot, and Microsoft 365 F3 (E) is a frontline-worker plan that does not bundle Copilot.
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.