- A
Configure SharePoint to block access from unmanaged devices, enable MFA for all users, and use Microsoft Purview Data Loss Prevention (DLP) to encrypt sensitive emails.
Why wrong: Blocking all unmanaged devices is too restrictive; MFA for all users is not required.
- B
Use Intune app protection policies to restrict data access, enable MFA for SharePoint, and use Microsoft Purview auto-labeling for encryption.
Why wrong: App protection policies apply to mobile apps, not to all devices.
- C
Create a conditional access policy to require MFA for all users, use Intune compliance policies to mark devices as compliant, and create a sensitivity label to encrypt documents.
Why wrong: MFA for all users is not required; the requirement is only for external users.
- D
Create a conditional access policy to grant access from compliant devices, require MFA for external users, and configure a sensitivity label with auto-labeling for 'Highly Confidential' documents.
This addresses all three requirements: compliant devices, MFA for external users, and auto-encryption.
MS-900 Describe Microsoft 365 apps and services Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Contoso Ltd. is a medium-sized company with 500 employees using Microsoft 365 E5. They have a mixed environment: 300 Windows 10 devices are managed by Microsoft Intune, and 200 are unmanaged but Azure AD joined. The company uses Microsoft Teams for collaboration and SharePoint Online for document storage. The security team wants to implement the following: restrict access to company data from unmanaged devices, require multi-factor authentication (MFA) for all external users accessing SharePoint, and ensure that sensitive documents labeled 'Highly Confidential' are automatically encrypted when shared via email. Currently, the company has no conditional access policies, no MFA enforced, and no data classification policies. The administrator needs to design a solution using Microsoft 365 built-in capabilities without purchasing additional licenses. What should the administrator do?
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
Create a conditional access policy to grant access from compliant devices, require MFA for external users, and configure a sensitivity label with auto-labeling for 'Highly Confidential' documents.
Option D is correct because it uses Conditional Access policies to require compliant devices for access (addressing unmanaged devices), requires MFA specifically for external users (not all users, aligning with the requirement), and uses a sensitivity label with auto-labeling to automatically encrypt 'Highly Confidential' documents when shared via email. This leverages built-in Microsoft 365 capabilities without additional licenses.
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.
- ✗
Configure SharePoint to block access from unmanaged devices, enable MFA for all users, and use Microsoft Purview Data Loss Prevention (DLP) to encrypt sensitive emails.
Why it's wrong here
Blocking all unmanaged devices is too restrictive; MFA for all users is not required.
- ✗
Use Intune app protection policies to restrict data access, enable MFA for SharePoint, and use Microsoft Purview auto-labeling for encryption.
Why it's wrong here
App protection policies apply to mobile apps, not to all devices.
- ✗
Create a conditional access policy to require MFA for all users, use Intune compliance policies to mark devices as compliant, and create a sensitivity label to encrypt documents.
Why it's wrong here
MFA for all users is not required; the requirement is only for external users.
- ✓
Create a conditional access policy to grant access from compliant devices, require MFA for external users, and configure a sensitivity label with auto-labeling for 'Highly Confidential' documents.
Why this is correct
This addresses all three requirements: compliant devices, MFA for external users, and auto-encryption.
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 often assume MFA must be enforced for all users or that DLP policies can encrypt emails, but the scenario specifically requires MFA only for external users and encryption via sensitivity labels, not DLP.
Detailed technical explanation
How to think about this question
Conditional Access policies in Azure AD evaluate signals such as device compliance (via Intune), user location, and risk to enforce access controls. Sensitivity labels in Microsoft Purview Information Protection can be configured for auto-labeling based on sensitive information types or trainable classifiers, and when applied, they enforce encryption via Azure Rights Management (Azure RMS) using AES-256. The 'grant access from compliant devices' condition uses the 'Require device to be marked as compliant' control, which checks Intune compliance status; unmanaged devices are blocked unless they meet the policy.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a conditional access policy to grant access from compliant devices, require MFA for external users, and configure a sensitivity label with auto-labeling for 'Highly Confidential' documents. — Option D is correct because it uses Conditional Access policies to require compliant devices for access (addressing unmanaged devices), requires MFA specifically for external users (not all users, aligning with the requirement), and uses a sensitivity label with auto-labeling to automatically encrypt 'Highly Confidential' documents when shared via email. This leverages built-in Microsoft 365 capabilities without additional licenses.
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.
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Last reviewed: Jun 24, 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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