- A
Upgrade all users to Microsoft 365 Business Premium
Why wrong: Business Premium does not include litigation hold or eDiscovery Standard; those features require Exchange Online Plan 2, which is not part of Business Premium.
- B
Upgrade all users to Microsoft 365 E3 and add Microsoft Defender for Office 365 Plan 1 for the finance department
E3 includes the needed compliance features. Defender for Office 365 Plan 1 is an add-on that can be assigned to only the finance users, making this cost-effective.
- C
Purchase Microsoft 365 E5 for all users
Why wrong: E5 includes additional features beyond the requirements (e.g., advanced eDiscovery, Customer Lockbox) at a higher cost, making it less cost-effective.
- D
Keep Business Standard and purchase Microsoft 365 E5 Compliance add-on for all users plus Exchange Online Protection for finance
Why wrong: The E5 Compliance add-on is only compatible with enterprise plans (E3/E5), not Business Standard. Exchange Online Protection is a basic anti-malware service, not Defender for Office 365.
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. A key principle to apply: microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.. 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.
An organization with 150 users currently uses Microsoft 365 Business Standard. They need advanced compliance features (litigation hold and eDiscovery Standard) for all users, and Microsoft Defender for Office 365 Plan 1 for the 50 users in the finance department. What is the most cost-effective licensing approach?
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
Upgrade all users to Microsoft 365 E3 and add Microsoft Defender for Office 365 Plan 1 for the finance department
Option B is the most cost-effective because it upgrades all users to Microsoft 365 E3, which includes the required advanced compliance features (litigation hold and eDiscovery Standard) natively, and then adds Microsoft Defender for Office 365 Plan 1 only for the 50 finance users who need it. This avoids the higher per-user cost of Business Premium (which lacks E3's compliance depth) or E5 (which includes unnecessary advanced features), while still meeting all stated requirements.
Key principle: Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Upgrade all users to Microsoft 365 Business Premium
Why it's wrong here
Business Premium does not include litigation hold or eDiscovery Standard; those features require Exchange Online Plan 2, which is not part of Business Premium.
- ✓
Upgrade all users to Microsoft 365 E3 and add Microsoft Defender for Office 365 Plan 1 for the finance department
Why this is correct
E3 includes the needed compliance features. Defender for Office 365 Plan 1 is an add-on that can be assigned to only the finance users, making this cost-effective.
Related concept
Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.
- ✗
Purchase Microsoft 365 E5 for all users
Why it's wrong here
E5 includes additional features beyond the requirements (e.g., advanced eDiscovery, Customer Lockbox) at a higher cost, making it less cost-effective.
- ✗
Keep Business Standard and purchase Microsoft 365 E5 Compliance add-on for all users plus Exchange Online Protection for finance
Why it's wrong here
The E5 Compliance add-on is only compatible with enterprise plans (E3/E5), not Business Standard. Exchange Online Protection is a basic anti-malware service, not Defender for Office 365.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume Microsoft 365 Business Premium includes all compliance features of E3, but it lacks litigation hold and eDiscovery Standard, leading them to incorrectly choose Option A as a simpler upgrade path.
Detailed technical explanation
How to think about this question
Litigation hold and eDiscovery Standard are part of the Microsoft Purview compliance portal and are included in Microsoft 365 E3 and E5, but not in Business Standard or Business Premium. Microsoft Defender for Office 365 Plan 1 provides anti-phishing, anti-spam, and safe attachments/links for Exchange Online, and can be licensed as an add-on for E3 users without requiring a full E5 license. In a real-world scenario, an organization might also consider Microsoft 365 E5 for users needing advanced eDiscovery or insider risk management, but here the requirements are limited to Standard eDiscovery and Defender Plan 1, making the E3 + add-on approach optimal.
KKey Concepts to Remember
- Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.
- Microsoft Defender for Office 365 Plan 1 is an add-on for enhanced email threat protection.
- Add-ons can be assigned to specific users, optimizing licensing costs.
- Microsoft 365 Business Premium does not include Exchange Online Plan 2 features like litigation hold.
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
Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.
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.
Review microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard., then practise related MS-900 questions on the same topic to reinforce the concept.
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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 — Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard..
What is the correct answer to this question?
The correct answer is: Upgrade all users to Microsoft 365 E3 and add Microsoft Defender for Office 365 Plan 1 for the finance department — Option B is the most cost-effective because it upgrades all users to Microsoft 365 E3, which includes the required advanced compliance features (litigation hold and eDiscovery Standard) natively, and then adds Microsoft Defender for Office 365 Plan 1 only for the 50 finance users who need it. This avoids the higher per-user cost of Business Premium (which lacks E3's compliance depth) or E5 (which includes unnecessary advanced features), while still meeting all stated requirements.
What should I do if I get this MS-900 question wrong?
Review microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard., then practise related MS-900 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Microsoft 365 E3 includes Exchange Online Plan 2, providing litigation hold and eDiscovery Standard.
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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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