- A
Data Loss Prevention policies
DLP detects sensitive information types and can restrict sharing across Microsoft 365 locations.
- B
It replaces the need for identity and access management
Why wrong: Compliance controls complement identity controls rather than replacing them.
- C
It requires every document to be made public
Why wrong: Security and compliance controls do not require public access.
- D
The policy should be tested with a limited group before broad rollout
Testing reduces the risk of blocking legitimate work or applying unintended restrictions.
MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365
This MS-900 practice question tests your understanding of describe security, compliance, privacy, and trust in microsoft 365. 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.
An organization wants to block sharing of documents containing credit card numbers. Which two statements are accurate about the Microsoft 365 capability involved?
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
Data Loss Prevention policies
Data Loss Prevention (DLP) policies in Microsoft 365 are specifically designed to detect and block the sharing of sensitive information, such as credit card numbers, by scanning content for predefined or custom sensitive information types. When a match is found, DLP can enforce actions like blocking the share or sending a notification, directly addressing the organization's requirement. This capability operates across Exchange Online, SharePoint, OneDrive, and Teams, providing comprehensive protection against accidental or malicious data leaks.
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.
- ✓
Data Loss Prevention policies
Why this is correct
DLP detects sensitive information types and can restrict sharing across Microsoft 365 locations.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
It replaces the need for identity and access management
Why it's wrong here
Compliance controls complement identity controls rather than replacing them.
- ✗
It requires every document to be made public
Why it's wrong here
Security and compliance controls do not require public access.
- ✓
The policy should be tested with a limited group before broad rollout
Why this is correct
Testing reduces the risk of blocking legitimate work or applying unintended restrictions.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse DLP with identity and access management (IAM) or assume DLP requires public exposure of documents, when in fact DLP is a content-aware security control that operates independently of access permissions and typically restricts sharing rather than requiring it.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft 365 DLP uses sensitive information types (SITs) defined by regex patterns and keyword lists, such as the credit card number SIT (built-in rule `Credit Card Number`) which validates against the Luhn algorithm and checks for common formats. When a DLP policy is triggered, it can apply actions like blocking the share, sending an email notification, or generating an incident report in the Microsoft 365 compliance portal, and it integrates with Microsoft Purview for unified auditing. A real-world scenario is an organization testing a DLP policy in 'test mode with policy tips' to avoid disrupting business workflows before enforcing a block action.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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 security, compliance, privacy, and trust in Microsoft 365 — This question tests Describe security, compliance, privacy, and trust in Microsoft 365 — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Data Loss Prevention policies — Data Loss Prevention (DLP) policies in Microsoft 365 are specifically designed to detect and block the sharing of sensitive information, such as credit card numbers, by scanning content for predefined or custom sensitive information types. When a match is found, DLP can enforce actions like blocking the share or sending a notification, directly addressing the organization's requirement. This capability operates across Exchange Online, SharePoint, OneDrive, and Teams, providing comprehensive protection against accidental or malicious data leaks.
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.
About these practice questions
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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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