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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. 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 company must retain all customer contracts for 10 years to comply with industry regulations. After 10 years, the contracts must be permanently deleted. Which Microsoft Purview solution should be used to automate this process?

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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

Data Lifecycle Management

Data Lifecycle Management (DLM) in Microsoft Purview is the correct solution because it allows you to define retention labels and policies that automatically retain contracts for a specified period (10 years) and then trigger a permanent deletion disposition review or direct deletion. This aligns directly with the regulatory requirement to retain data for a fixed duration and then dispose of it securely.

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.

  • Data Loss Prevention (DLP)

    Why it's wrong here

    DLP policies detect and prevent unauthorized sharing of sensitive data, not retention or deletion scheduling.

  • Data Lifecycle Management

    Why this is correct

    Data Lifecycle Management provides retention labels and policies to automatically retain data for a defined period and then delete it, meeting the regulatory requirement.

    Related concept

    Read the scenario before looking for a memorised answer.

  • eDiscovery

    Why it's wrong here

    eDiscovery is used to search, hold, and export content for legal or investigative purposes, not for scheduled retention and deletion.

  • Information Protection

    Why it's wrong here

    Information Protection applies sensitivity labels to classify and protect data but does not manage retention or deletion schedules.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often confuse Data Lifecycle Management with Data Loss Prevention, mistakenly thinking DLP can delete data after a period, when DLP only blocks or alerts on data exfiltration, not manage retention schedules.

Detailed technical explanation

How to think about this question

Data Lifecycle Management leverages retention labels that can be auto-applied based on sensitive information types, keywords, or trainable classifiers, and then enforces a disposition action (e.g., permanent deletion) after a configurable period. A subtle behavior is that if a retention label is applied to an item that is also under a litigation hold, the deletion action is blocked until the hold is released, ensuring compliance with legal obligations. In a real-world scenario, a financial services firm might use DLM to automatically delete customer PII after 7 years while retaining transaction records for 10 years, using separate labels with different retention durations.

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 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.

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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: Data Lifecycle Management — Data Lifecycle Management (DLM) in Microsoft Purview is the correct solution because it allows you to define retention labels and policies that automatically retain contracts for a specified period (10 years) and then trigger a permanent deletion disposition review or direct deletion. This aligns directly with the regulatory requirement to retain data for a fixed duration and then dispose of it securely.

What should I do if I get this SC-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.

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Last reviewed: Jun 11, 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.