- A
Disable external sharing at the tenant level and enable it only for the specific project site
This approach uses the granular sharing settings in SharePoint Online: a tenant-wide restriction prevents all external sharing by default, and exceptions can be made on a per-site basis, providing a clear, manageable security model.
- B
Change the default sharing link type to 'Specific people' and add the partner's domain to an allow list
Why wrong: This only changes the default link behavior; users could still share with external users using other link types. It does not block external sharing globally.
- C
Apply sensitivity labels with encryption to all files
Why wrong: Sensitivity labels with encryption protect content regardless of sharing, but they do not prevent external sharing of unencrypted files and require user classification, which is less direct than sharing settings.
- D
Configure a DLP policy to block external sharing except for the partner domain
Why wrong: DLP policies can inspect content and block sharing based on rules, but they are event-driven and can be complex to maintain; site-level sharing settings are more straightforward for this requirement.
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. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 prevent employees from sharing sensitive files with external users via SharePoint Online, but they need to allow sharing with a specific external partner for a single project. What is the most efficient configuration?
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
Disable external sharing at the tenant level and enable it only for the specific project site
Option A is correct because it allows the organization to disable external sharing globally at the tenant level via the SharePoint admin center, which prevents all users from sharing with external users by default. Then, by enabling external sharing only for the specific project site (site-level override), the organization can grant the necessary access to the external partner while maintaining the broad restriction. This is the most efficient approach because it uses a single configuration change at the tenant level and a targeted exception at the site level, avoiding complex policies or labels.
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.
- ✓
Disable external sharing at the tenant level and enable it only for the specific project site
Why this is correct
This approach uses the granular sharing settings in SharePoint Online: a tenant-wide restriction prevents all external sharing by default, and exceptions can be made on a per-site basis, providing a clear, manageable security model.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Change the default sharing link type to 'Specific people' and add the partner's domain to an allow list
Why it's wrong here
This only changes the default link behavior; users could still share with external users using other link types. It does not block external sharing globally.
- ✗
Apply sensitivity labels with encryption to all files
Why it's wrong here
Sensitivity labels with encryption protect content regardless of sharing, but they do not prevent external sharing of unencrypted files and require user classification, which is less direct than sharing settings.
- ✗
Configure a DLP policy to block external sharing except for the partner domain
Why it's wrong here
DLP policies can inspect content and block sharing based on rules, but they are event-driven and can be complex to maintain; site-level sharing settings are more straightforward for this requirement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP policies or sensitivity labels as the primary method to control sharing, when in fact SharePoint sharing settings at the tenant and site level are the direct and most efficient configuration for this scenario.
Detailed technical explanation
How to think about this question
Under the hood, SharePoint Online sharing settings are hierarchical: tenant-level settings (in the SharePoint admin center) control the maximum allowed sharing capability, and site-level settings can be more restrictive but cannot exceed the tenant-level setting. When external sharing is disabled at the tenant level, all sites inherit that restriction, but enabling it for a specific site (via site collection admin or PowerShell) allows that site to use external sharing up to the tenant's maximum (e.g., 'Existing guests' or 'Anyone'). This granular control is managed via the Set-SPOSite cmdlet with the -SharingCapability parameter, ensuring that only the designated site can share externally.
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
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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: Disable external sharing at the tenant level and enable it only for the specific project site — Option A is correct because it allows the organization to disable external sharing globally at the tenant level via the SharePoint admin center, which prevents all users from sharing with external users by default. Then, by enabling external sharing only for the specific project site (site-level override), the organization can grant the necessary access to the external partner while maintaining the broad restriction. This is the most efficient approach because it uses a single configuration change at the tenant level and a targeted exception at the site level, avoiding complex policies or labels.
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 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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