The answer is to configure automatic labeling policies in Microsoft Purview that propagate sensitivity labels from source data to Power BI datasets. This is correct because Purview’s automatic labeling policies are designed to detect and inherit sensitivity labels directly from the source data—such as files in Azure SQL or Azure Blob Storage—and apply them to downstream Power BI datasets without manual intervention. On the PL-300 exam, this question tests your understanding of how Microsoft Purview integrates with Power BI for data governance, specifically the distinction between automatic inheritance versus manual labeling or classification-only tools. A common trap is confusing Purview’s automatic labeling with manual label application or with Azure Information Protection’s classification scanner, which does not handle inheritance to Power BI. Remember the key: automatic inheritance requires a Purview policy that explicitly propagates labels from source to destination—think “source-to-service propagation” as your memory anchor.
PL-300 Manage and secure Power BI Practice Question
This PL-300 practice question tests your understanding of manage and secure power bi. 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.
You are managing a Power BI environment that uses Microsoft Purview for data governance. You need to ensure that all new datasets automatically inherit sensitivity labels from their source data. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
In Microsoft Purview, set up 'Automatic labeling' policies that propagate labels from source to Power BI datasets.
Option D is correct because you need to set Purview to automatically apply labels based on source data labels. Option A is wrong because it only applies manual labels. Option B is wrong because it doesn't automatically inherit. Option C is wrong because it's for classification, not automatic inheritance.
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.
✗
Enable 'Sensitivity labels' in Power BI tenant settings and require labels on datasets.
Why it's wrong here
This requires manual labeling, not automatic inheritance.
✓
In Microsoft Purview, set up 'Automatic labeling' policies that propagate labels from source to Power BI datasets.
Why this is correct
Automatic labeling policies can propagate labels.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use Microsoft Purview Data Map to scan source data and manually apply labels.
Why it's wrong here
Manual application is not automatic.
✗
Configure a Power Automate flow to apply labels based on dataset metadata.
Why it's wrong here
This is a custom solution, not native automatic inheritance.
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: In Microsoft Purview, set up 'Automatic labeling' policies that propagate labels from source to Power BI datasets. — Option D is correct because you need to set Purview to automatically apply labels based on source data labels. Option A is wrong because it only applies manual labels. Option B is wrong because it doesn't automatically inherit. Option C is wrong because it's for classification, not automatic inheritance.
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. Your organization is implementing a data sensitivity labeling strategy for Power BI. You have created labels in Microsoft Purview Compliance Portal. After publishing a report, you notice that some labels are not available for selection in Power BI. What is the most likely cause?
medium
A.The labels were created in the wrong workspace.
B.The Power BI tenant does not have Premium capacity.
✓ C.The labels are not included in a label policy that applies to Power BI.
D.Users do not have Power BI Pro licenses.
Why C: Option D is correct because sensitivity labels must be published in a label policy that includes Power BI as a target. Option A is wrong because label creation does not require Premium. Option B is wrong because labels are configured centrally, not per workspace. Option C is wrong because user licenses affect consumption, not label availability.
Last reviewed: Jun 21, 2026
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