Question 798 of 1,411

SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions

This SC-900 practice question tests your understanding of describe the capabilities of microsoft compliance solutions. 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.

Exhibit

Refer to the exhibit.

{
  "LabelId": "1f2e3d4c-5b6a-7c8d-9e0f-1a2b3c4d5e6f",
  "DisplayName": "Highly Confidential",
  "Tooltip": "This label is for highly confidential data.",
  "AutoLabeling": {
    "Enabled": true,
    "Rules": [
      {
        "Condition": {
          "SensitiveInformation": {
            "SensitiveInfoTypeId": "Custom_PII_Type",
            "Count": 1
          }
        },
        "Behavior": "Apply"
      }
    ]
  },
  "Protection": {
    "Encryption": {
      "Enabled": true,
      "EncryptionMethod": "AES256"
    }
  }
}

A company deploys a sensitivity label as shown in the exhibit. The custom sensitive information type 'Custom_PII_Type' is configured to detect employee IDs. What happens when a user creates a new document in SharePoint Online that contains an employee ID?

Question 1hardmultiple choice
Full question →

Exhibit

Refer to the exhibit.

{
  "LabelId": "1f2e3d4c-5b6a-7c8d-9e0f-1a2b3c4d5e6f",
  "DisplayName": "Highly Confidential",
  "Tooltip": "This label is for highly confidential data.",
  "AutoLabeling": {
    "Enabled": true,
    "Rules": [
      {
        "Condition": {
          "SensitiveInformation": {
            "SensitiveInfoTypeId": "Custom_PII_Type",
            "Count": 1
          }
        },
        "Behavior": "Apply"
      }
    ]
  },
  "Protection": {
    "Encryption": {
      "Enabled": true,
      "EncryptionMethod": "AES256"
    }
  }
}

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

The document is automatically labeled 'Highly Confidential' and encrypted.

The label has auto-labeling enabled, so it will automatically apply the label and encryption to the document when the condition is met. The user does not need to manually apply the label, and the document is not blocked or deleted.

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.

  • The user is prompted to manually apply the label.

    Why it's wrong here

    Auto-labeling is enabled, so it happens automatically.

  • The document is blocked from being shared externally.

    Why it's wrong here

    No DLP policy is shown; this is a sensitivity label.

  • The document is automatically labeled 'Highly Confidential' and encrypted.

    Why this is correct

    Auto-labeling applies the label and encryption automatically.

    Related concept

    Read the scenario before looking for a memorised answer.

  • The document is deleted automatically.

    Why it's wrong here

    No deletion action is specified.

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.

Trap categories for this question

  • Command / output trap

    No DLP policy is shown; this is a sensitivity label.

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 SC-900 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.

Related practice questions

Related SC-900 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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FAQ

Questions learners often ask

What does this SC-900 question test?

Describe the capabilities of Microsoft compliance solutions — This question tests Describe the capabilities of Microsoft compliance solutions — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: The document is automatically labeled 'Highly Confidential' and encrypted. — The label has auto-labeling enabled, so it will automatically apply the label and encryption to the document when the condition is met. The user does not need to manually apply the label, and the document is not blocked or deleted.

What should I do if I get this SC-900 question wrong?

Identify which SC-900 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.

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Last reviewed: Jun 21, 2026

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This SC-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 SC-900 exam.