- A
Microsoft SharePoint
Correct. SharePoint Server (on-premises) enables real-time co-authoring with documents stored on a local network server, satisfying regulatory requirements.
- B
Microsoft Word (desktop)
Why wrong: Incorrect. Microsoft Word desktop can save documents locally but does not support real-time co-authoring without a cloud-based sync service like OneDrive or SharePoint.
- C
Microsoft OneDrive
Why wrong: Incorrect. OneDrive is a cloud storage service; documents are stored in the cloud, not on a local network server. Hybrid configurations are not assumed in this scenario.
- D
Microsoft Teams
Why wrong: Incorrect. Microsoft Teams stores files in SharePoint or OneDrive (cloud), so it does not satisfy local storage requirements.
Question 140 of 985
SharePoint Server On-Premises — Regulatory Compliance Real-Time Collaboration | Microsoft 365 Fundamentals Explained
This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
A user needs to collaborate on a document with colleagues in real time, but the document must be stored on a local network server due to regulatory requirements. Which Microsoft 365 app should the user use?
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 SharePoint
Option A is correct because Microsoft SharePoint can be deployed on-premises (SharePoint Server), allowing documents to be stored on a local network server while supporting real-time co-authoring. This meets the regulatory requirement for local storage. Options B, C, and D either lack real-time collaboration or rely on cloud storage.
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.
- ✓
Microsoft SharePoint
Why this is correct
Correct. SharePoint Server (on-premises) enables real-time co-authoring with documents stored on a local network server, satisfying regulatory requirements.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Word (desktop)
Why it's wrong here
Incorrect. Microsoft Word desktop can save documents locally but does not support real-time co-authoring without a cloud-based sync service like OneDrive or SharePoint.
- ✗
Microsoft OneDrive
Why it's wrong here
Incorrect. OneDrive is a cloud storage service; documents are stored in the cloud, not on a local network server. Hybrid configurations are not assumed in this scenario.
- ✗
Microsoft Teams
Why it's wrong here
Incorrect. Microsoft Teams stores files in SharePoint or OneDrive (cloud), so it does not satisfy local storage requirements.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Candidates may assume OneDrive can be configured for local storage via hybrid sync, but the question specifies a local network server due to regulatory requirements, which is best met by an on-premises SharePoint deployment.
Trap categories for this question
Scenario analysis trap
Incorrect. OneDrive is a cloud storage service; documents are stored in the cloud, not on a local network server. Hybrid configurations are not assumed in this scenario.
Detailed technical explanation
How to think about this question
OneDrive for Business uses the Sync Engine (File Sync Protocol) to synchronize files between a local folder and SharePoint/OneDrive, but it can also sync files from a SharePoint Server on-premises if the organization uses a hybrid deployment with the SharePoint Server 2013 or later and the OneDrive sync app. Real-time co-authoring relies on the Office Collaboration Service, which uses WebSocket connections and the Co-Authoring Protocol (MS-COAUTH) to merge changes at the paragraph level; this works even when the file is synced locally, as long as the sync client maintains a connection to the server. In a regulatory scenario, an organization could deploy a SharePoint farm on-premises, enable hybrid sync with OneDrive, and allow users to co-author documents that physically reside on the local network server, satisfying compliance requirements.
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.
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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: Microsoft SharePoint — Option A is correct because Microsoft SharePoint can be deployed on-premises (SharePoint Server), allowing documents to be stored on a local network server while supporting real-time co-authoring. This meets the regulatory requirement for local storage. Options B, C, and D either lack real-time collaboration or rely on cloud storage.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 24, 2026
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