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MS-900 Describe Microsoft 365 apps and services Practice Question

A team wants to build a custom business app to track inventory with minimal custom code. They need a cloud-based database that can store structured data and is tightly integrated with the low-code app platform. Which Microsoft 365 service should they use as the database?

⚠ Common exam trap

MS-900 often tests the misconception that SharePoint lists or Excel are sufficient databases for low-code apps, but the exam expects candidates to recognize Dataverse as the dedicated, scalable database service for Power Platform.

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 Dataverse

Microsoft Dataverse is the correct choice because it is a cloud-based, scalable data service designed specifically for Power Platform and Microsoft 365 low-code app development. It stores structured data in tables with rich metadata, supports relationships, business logic, and security at the row/column level, and integrates natively with Power Apps, Power Automate, and Power BI. This tight integration enables building custom business apps with minimal code, exactly as required for inventory tracking.

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 Dataverse

    Why this is correct

    Microsoft Dataverse is the correct choice because it serves as the enterprise-grade data platform beneath the Power Platform, providing relational tables, rich metadata, security roles, and built-in business rules that are essential for a custom inventory-tracking app. It supports calculated columns, rollup fields, and relationships between products, warehouses, and stock transactions — capabilities that go beyond simple file storage. Dataverse integrates natively with Power Apps and Power Automate, enabling low-code app logic without requiring a custom database. Because it offers row-level security and auditing, it satisfies compliance and scalability needs for multi-user business applications.

  • ✗

    Microsoft SharePoint Online list

    Why it's wrong here

    A SharePoint Online list can store inventory rows and even surface a basic Power Apps form, but it is designed for lightweight collaborative lists rather than relational applications. It lacks native support for foreign keys, data integrity constraints, and complex queries across related entities, making it impossible to model master-detail inventory relationships such as purchase orders and line items. SharePoint's list thresholds (5,000-item view limits) and slower connector performance become bottlenecks as inventory grows. While Dataverse offers built-in business logic and granular security, SharePoint lists require custom workarounds for even moderate application requirements.

  • ✗

    Microsoft Excel Online

    Why it's wrong here

    Excel Online is a spreadsheet, not a database, so it provides no relational schema enforcement, no true concurrent transaction management, and no granular row-level security — multiple users can overwrite inventory data simultaneously. Power Apps can consume Excel via connectors, but updates require one row at a time and there is no way to enforce referential integrity or business validation rules. Excel also lacks server-side calculated fields, auditing, and backup/restore with application tiers, making it acceptable for prototyping but unsuitable for a production inventory tracking system. Its use case ends where multi-user, real-time transaction integrity begins.

  • ✗

    Microsoft Forms

    Why it's wrong here

    Microsoft Forms is designed for collecting survey responses, quiz answers, and simple feedback, not for emulating a relational data store needed by a custom inventory application. Each response is written to a plain output (often an Excel sheet) with no structured table schema, no relationships, and no business logic layer to validate stock quantities or integrate with inventory workflows. While Forms supports branching and basic validation, it cannot model inventory items, suppliers, or stock movements, nor can it provide the retrieval and update functions a business app requires. It therefore serves as a data-entry front end only if paired with separate, more robust storage like Dataverse.

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Written and reviewed by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

Last reviewed September 2026 · checked against the official Microsoft exam blueprint

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.