The answer is that three components must be in place: a Microsoft Purview Information Protection subscription (including Azure Information Protection P1/P2), sensitivity labels published to users or groups, and Power BI admin settings that enable sensitivity labels. These prerequisites work together because Purview Information Protection provides the classification framework, the published labels define which tags are available for data governance, and the Power BI admin toggle activates the integration within the service. On the PL-300 exam, this question tests your understanding that sensitivity labels are a tenant-wide governance feature, not a licensing or capacity restriction—a common trap is assuming a Premium capacity or specific Power BI license is required, but labels function with both Pro and Premium if the admin enables them. Remember the mnemonic “Publish, Purview, Power BI Admin” to recall that labels must be published, a Purview subscription must be active, and the admin setting must be turned on.
PL-300 Manage and secure Power BI Practice Question
This PL-300 practice question tests your understanding of manage and secure power bi. 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.
Which THREE components must be in place to enable Power BI data sensitivity labels from Microsoft Purview? (Select exactly three.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Power BI admin setting to enable sensitivity labels enabled
Options B, C, and D are correct. A Purview Information Protection subscription is required; sensitivity labels must be published to users or groups; and Power BI admin settings must enable sensitivity labels. Option A is wrong because the Power BI license is not a prerequisite; any license can use labels if the admin enables them. Option E is wrong because a Premium capacity is not required; labels work with Pro and Premium.
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.
✓
Power BI admin setting to enable sensitivity labels enabled
Why this is correct
The admin must turn on the feature.
Related concept
Read the scenario before looking for a memorised answer.
✓
Sensitivity labels published to users or groups in Microsoft Purview compliance portal
Why this is correct
Labels must be published to be available.
Related concept
Read the scenario before looking for a memorised answer.
✗
Power BI Premium capacity assigned to the workspace
Why it's wrong here
Labels are supported in Pro and Premium workspaces.
✓
Microsoft Purview Information Protection subscription (including Azure Information Protection P1/P2)
Why this is correct
This subscription provides the labeling infrastructure.
Related concept
Read the scenario before looking for a memorised answer.
✗
Power BI Pro license for all users
Why it's wrong here
Labels work with any license if enabled by admin.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which PL-300 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Manage and secure Power BI — This question tests Manage and secure Power BI — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Power BI admin setting to enable sensitivity labels enabled — Options B, C, and D are correct. A Purview Information Protection subscription is required; sensitivity labels must be published to users or groups; and Power BI admin settings must enable sensitivity labels. Option A is wrong because the Power BI license is not a prerequisite; any license can use labels if the admin enables them. Option E is wrong because a Premium capacity is not required; labels work with Pro and Premium.
What should I do if I get this PL-300 question wrong?
Identify which PL-300 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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 →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which THREE of the following are required to configure Microsoft Purview Information Protection sensitivity labels for Power BI? (Choose three.)
hard
A.Each user must have a Power BI Pro license.
B.Have a Power BI Premium capacity assigned to the workspace.
✓ C.Users must have appropriate permissions (e.g., Azure Information Protection rights) to apply labels.
✓ D.Sensitivity labels must be published in the Microsoft 365 Compliance Center.
✓ E.Enable sensitivity labels in the Power BI admin tenant settings.
Why C: Options A, C, and D are correct. Sensitivity labels in Power BI require enabling in the tenant settings, having the labels published in Microsoft 365 Compliance Center, and the user must have the appropriate permissions to apply the labels. Option B is wrong because Power BI Premium is not a requirement; labels work in shared capacity too. Option E is wrong because a Power BI Pro license is required for the user to apply labels, but it's not a configuration step.
Last reviewed: Jun 21, 2026
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This PL-300 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 PL-300 exam.
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