- A
Data Lifecycle Management (DLM)
Why wrong: Data Lifecycle Management (via retention policies and labels) can manage retention and deletion, but it does not provide the 'record' status that locks a document to prevent editing. DLM is for general content lifecycle, not regulatory records.
- B
Records Management
Records Management uses retention labels that declare items as records, locking them against modifications or deletions during the retention period, and supports automated disposition review and permanent deletion.
- C
eDiscovery (Premium)
Why wrong: eDiscovery is used for legal discovery holds and searches, not for automating retention and disposition of records based on a fixed schedule.
- D
Sensitivity Labels
Why wrong: Sensitivity labels apply classification and protection (e.g., encryption, visual markings) but do not enforce immutable retention that prevents deletion or editing for a specified period.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 vendor contracts for 10 years to meet regulatory requirements. After 10 years, the contracts must be permanently destroyed with no possibility of recovery. The compliance team wants to automate this lifecycle and ensure that during the retention period, the contracts cannot be edited or deleted by users. Which Microsoft Purview solution should they use?
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
Records Management
Records Management in Microsoft Purview is designed to declare records (regulatory or legal) that must be retained for a specific period and then disposed of in a compliant manner. It enforces immutability during the retention period—users cannot edit or delete records—and supports a disposition review or automatic permanent deletion after the retention period ends, exactly matching the requirement for 10-year retention followed by destruction with no recovery.
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 Lifecycle Management (DLM)
Why it's wrong here
Data Lifecycle Management (via retention policies and labels) can manage retention and deletion, but it does not provide the 'record' status that locks a document to prevent editing. DLM is for general content lifecycle, not regulatory records.
- ✓
Records Management
Why this is correct
Records Management uses retention labels that declare items as records, locking them against modifications or deletions during the retention period, and supports automated disposition review and permanent deletion.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
eDiscovery (Premium)
Why it's wrong here
eDiscovery is used for legal discovery holds and searches, not for automating retention and disposition of records based on a fixed schedule.
- ✗
Sensitivity Labels
Why it's wrong here
Sensitivity labels apply classification and protection (e.g., encryption, visual markings) but do not enforce immutable retention that prevents deletion or editing for a specified period.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Microsoft often tests the distinction between Data Lifecycle Management (which manages non-record content) and Records Management (which enforces immutability and disposition for regulatory records), so the trap here is assuming DLM can provide the required edit/delete prevention and automatic destruction, when only Records Management offers those capabilities.
Detailed technical explanation
How to think about this question
Records Management uses retention labels that, when applied, lock the item as a 'Regulatory Record' (or 'Legal Record'), invoking a strict immutability policy that prevents any modification or deletion by users or even administrators. The disposition process can be configured to trigger a 'disposition review' or 'permanent deletion' after the retention period, and the system uses a secure, irreversible deletion mechanism that removes the item from all indexes and backups. In a real-world scenario, if a vendor contract were accidentally marked as a record without proper retention, the organization would need to use the 'Unlock Records' feature (if permitted by the label policy) or contact Microsoft support, highlighting the importance of careful label configuration.
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: Records Management — Records Management in Microsoft Purview is designed to declare records (regulatory or legal) that must be retained for a specific period and then disposed of in a compliant manner. It enforces immutability during the retention period—users cannot edit or delete records—and supports a disposition review or automatic permanent deletion after the retention period ends, exactly matching the requirement for 10-year retention followed by destruction with no recovery.
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 30, 2026
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.
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