MS-900 Describe Microsoft 365 apps and services Practice Question
Which THREE Microsoft 365 services can be used to store and manage files in the cloud?
⚠ Common exam trap
The trap here is that Microsoft Teams is listed as a correct answer because it can store files via its Files tab (which actually uses SharePoint or OneDrive under the hood), but candidates often confuse Teams as a primary storage service rather than a collaboration hub that relies on underlying storage services.
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
✓
OneDrive for Business
OneDrive for Business is a cloud storage service that allows users to store, sync, and share files individually. It is part of Microsoft 365 and provides personal storage with up to 1 TB per user, integrating with Office apps for real-time co-authoring.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
OneDrive for Business
Why this is correct
OneDrive for Business provides each Microsoft 365 user a personal, cloud-hosted library for storing work files. It includes a sync client that mirrors local folders to the cloud, enables granular sharing, and integrates deeply with Office apps. Because it is a true storage service with quota and retention controls, it directly satisfies the question's requirement to store and manage files online.
- ✓
Microsoft Teams
Why this is correct
Within Microsoft Teams, files shared in channel conversations and the Files tab are stored in a SharePoint document library on the team's underlying site, while files from private chats are stored in the sender's OneDrive for Business. Teams is therefore a file-management and collaboration surface rather than an independent storage backend. Users can upload, coauthor, and organize files directly through Teams, making it a legitimate method for storing files in the Microsoft 365 ecosystem.
- ✗
Power BI
Why it's wrong here
Power BI is an analytics and business intelligence platform used to create interactive dashboards and reports, not a general-purpose file repository. It stores the semantic models and report definitions inside its own dedicated storage, but it does not provide a document library, folder hierarchy, or sync client for arbitrary user files. Treating Power BI as a file-storage service confuses its role as an analysis tool with the document-management capabilities of SharePoint or OneDrive.
- ✓
SharePoint
Why this is correct
SharePoint Online organizes files into site-based document libraries with configurable permissions, version history, metadata columns, and retention policies. It is the primary team-storage service in Microsoft 365, supporting coauthoring and enterprise content management at scale. Every SharePoint site contains storage that can be used for both structured and unstructured data, making it a definitive file-storage service. Its backend also powers file storage for services like Microsoft Teams.
- ✗
Exchange Online
Why it's wrong here
Exchange Online is a messaging service that handles email in transit, mailbox storage for messages, calendars, contacts, and tasks. Although mailboxes can hold attachments, they are subject to mailbox quotas and lack document-management features such as versioning, file-level sharing links, or sync-to-desktop behavior. Its purpose is communication, not collaborative file storage, so storing files there is neither practical nor the intended use.
Go deeper
Related to this question
Learn chapter
SharePoint Online and OneDrive
Key term
OneDrive for Business
OneDrive for Business is a cloud-based file storage and synchronization service from Microsoft, part of Microsoft 365, that lets users store, access, and share work files securely from anywhere.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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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.