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MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365

Litware Inc. is a law firm that uses Microsoft 365 E5. They have a requirement to preserve all communications between attorneys and clients as legal hold for ongoing litigation. The legal team needs to identify and preserve all relevant emails and documents from specific users. The preservation should be indefinite until the hold is released. The IT team has enabled Litigation Hold for the mailboxes of the involved users. However, the legal team also needs to preserve documents in SharePoint Online and OneDrive for Business. What should you do to preserve the documents?

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 an eDiscovery case and place a hold on the relevant SharePoint sites and OneDrive accounts.

A eDiscovery hold can be placed on specific sites and mailboxes for a specific case. Option A (Litigation Hold) only applies to mailboxes, not SharePoint/OneDrive. Option B (retention policy) is for time-based retention, not indefinite hold. Option D (label) does not preserve content permanently.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Create a retention policy in Microsoft Purview to retain all documents in the involved sites for 10 years.

    Why it's wrong here

    A Microsoft Purview retention policy is designed for time-based lifecycle management, not indefinite legal preservation. It lets you define a fixed retention period (e.g., 10 years) after which content is permanently deleted or moved to a disposition review; it cannot create a hold that lasts until the litigation is resolved. Additionally, a broad retention policy on all documents would still not preserve every version or deleted file the way an eDiscovery hold does, because it operates on a schedule rather than a litigation trigger.

  • ✗

    Enable Litigation Hold for the users' OneDrive for Business accounts.

    Why it's wrong here

    Litigation Hold is an Exchange Online capability that applies to mailboxes, not to OneDrive for Business or SharePoint sites. Enabling it on a OneDrive account is unsupported and ineffective because the preservation engine for OneDrive and SharePoint is the eDiscovery hold, which retains site content and its versions. While litigation hold can preserve mailbox items indefinitely, it has no effect on documents stored outside Exchange, so this action would leave the law firm's OneDrive and SharePoint content unprotected.

  • ✓

    Create an eDiscovery case and place a hold on the relevant SharePoint sites and OneDrive accounts.

    Why this is correct

    An eDiscovery case in Microsoft Purview provides a legal hold that can be placed on SharePoint sites and OneDrive accounts, preserving all content in-place without a predefined expiration date. This hold retains current and previous versions of documents, as well as metadata and deleted items, until the hold is explicitly removed or the case is closed. Because the requirement is an indefinite hold pending litigation, a standard eDiscovery hold is the only mechanism among these options that fully preserves the relevant sites and accounts at both the site and item level.

  • ✗

    Apply a retention label to all documents in the involved sites.

    Why it's wrong here

    Retention labels are flexible classification tags that can trigger a specific retention or deletion period, but they are not a litigation hold and can be removed by users with appropriate permissions. Unlike an eDiscovery hold, a label does not automatically preserve all versions of a document, nor does it retain deleted items from the site collection. Since the law firm needs guaranteed indefinite preservation of potentially relevant content, applying retention labels is an incomplete and unreliable approach that lacks the enforcement power of a site-level hold.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.