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. A key principle to apply: sensitivity labels apply persistent protection directly to files.. 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.
During requirements gathering, an IT manager says the organization must make document protection persist after a file is downloaded or emailed. Microsoft security, identity, or compliance capability should it use?
Microsoft Planner
Why wrong: Planner manages tasks and does not provide this security or compliance control.
Microsoft Forms
Why wrong: Forms creates surveys and quizzes, not this security or compliance capability.
Microsoft Stream
Why wrong: Stream hosts video content and does not meet this requirement.
Sensitivity labels with encryption
Sensitivity labels can apply persistent encryption and access restrictions.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Sensitivity labels with encryption
Sensitivity labels can apply persistent encryption and access restrictions.
Key principle: Sensitivity labels apply persistent protection directly to files.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Microsoft Planner
Why it's wrong here
Planner manages tasks and does not provide this security or compliance control.
Microsoft Forms
Why it's wrong here
Forms creates surveys and quizzes, not this security or compliance capability.
Microsoft Stream
Why it's wrong here
Stream hosts video content and does not meet this requirement.
Sensitivity labels with encryption
Why this is correct
Sensitivity labels can apply persistent encryption and access restrictions.
Related concept
Sensitivity labels apply persistent protection directly to files.
Common exam traps
Candidates might be tempted by other Microsoft 365 services if they don't understand the 'persistent protection' requirement.
Detailed technical explanation
The core requirement in this scenario is to ensure document protection remains active even after a file leaves the organization's immediate control, such as after being downloaded or emailed. Sensitivity labels, specifically when configured with encryption, directly address this need by applying persistent protection policies to the content itself. When a sensitivity label with encryption is applied, the document becomes encrypted, and access permissions (who can open, edit, print, etc.) are embedded within the file. This protection travels with the document, meaning that even if the file is sent to an external recipient, they will only be able to access it if their identity matches the permissions defined in the label. This mechanism is part of Microsoft Purview Information Protection (formerly Azure Information Protection) and is fundamental for data loss prevention and compliance. The other options, Microsoft Planner, Forms, and Stream, are productivity and collaboration tools that do not offer any capabilities for persistent, file-level security or encryption that travels with the document. Planner is for task management, Forms for surveys, and Stream for video hosting, none of which are designed to protect the content of Office documents in transit or at rest outside of their native applications.
Key takeaway
Sensitivity labels apply persistent protection directly to files.
Real-world example
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
Review sensitivity labels apply persistent protection directly to files., then practise related MS-900 questions on the same topic to reinforce the concept.
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FAQ
Describe security, compliance, privacy, and trust in Microsoft 365 — This question tests Describe security, compliance, privacy, and trust in Microsoft 365 — Sensitivity labels apply persistent protection directly to files..
The correct answer is: Sensitivity labels with encryption — Sensitivity labels can apply persistent encryption and access restrictions.
Review sensitivity labels apply persistent protection directly to files., then practise related MS-900 questions on the same topic to reinforce the concept.
Sensitivity labels apply persistent protection directly to files.
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Last reviewed: May 25, 2026
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