- A
Data Loss Prevention (DLP)
Correct. DLP policies can identify sensitive data such as credit card numbers and automatically block actions like sharing externally. It also provides policy tips to educate users.
- B
Data Lifecycle Management (DLM)
Why wrong: Incorrect. DLM focuses on retention and deletion of data over time, not on preventing sharing of sensitive data.
- C
Information Protection (sensitivity labels)
Why wrong: Incorrect. While sensitivity labels can classify and protect data with encryption or watermarks, they are not primarily designed to enforce blocking of external sharing based on content. DLP is the appropriate solution for that.
- D
Audit (Standard)
Why wrong: Incorrect. Audit logs record user and admin activities but does not proactively detect or prevent data sharing.
Quick Answer
The answer is Data Loss Prevention (DLP) in Microsoft Purview. This solution is correct because it uses built-in sensitive information types, such as the Credit Card Number classifier, to automatically detect and protect sensitive data across SharePoint Online and OneDrive for Business, and its policies can be configured to block or restrict external sharing of that data, directly fulfilling the requirement to prevent external sharing of credit card numbers. On the SC-900 exam, this question tests your understanding of how Purview solutions map to specific data protection scenarios; a common trap is confusing DLP with Microsoft Information Protection (MIP) or Azure Information Protection (AIP), but remember that DLP is the enforcement engine for sharing controls, while MIP handles classification and labeling. For a quick memory tip, think "DLP blocks the share, MIP labels the care."
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 uses Microsoft 365 and needs to identify and protect sensitive data, such as credit card numbers, stored in SharePoint Online and OneDrive for Business. They also want to prevent users from sharing this data externally. 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
Data Loss Prevention (DLP)
Data Loss Prevention (DLP) in Microsoft Purview is the correct solution because it is specifically designed to identify, monitor, and automatically protect sensitive data like credit card numbers (using built-in sensitive information types such as Credit Card Number) across Microsoft 365 services, including SharePoint Online and OneDrive for Business. DLP policies can enforce rules to block or restrict external sharing of such data, directly meeting the requirement to prevent users from sharing sensitive data externally.
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 this is correct
Correct. DLP policies can identify sensitive data such as credit card numbers and automatically block actions like sharing externally. It also provides policy tips to educate users.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Lifecycle Management (DLM)
Why it's wrong here
Incorrect. DLM focuses on retention and deletion of data over time, not on preventing sharing of sensitive data.
- ✗
Information Protection (sensitivity labels)
Why it's wrong here
Incorrect. While sensitivity labels can classify and protect data with encryption or watermarks, they are not primarily designed to enforce blocking of external sharing based on content. DLP is the appropriate solution for that.
- ✗
Audit (Standard)
Why it's wrong here
Incorrect. Audit logs record user and admin activities but does not proactively detect or prevent data sharing.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Information Protection (sensitivity labels) with DLP, assuming labels alone can prevent external sharing, but labels require DLP policies to enforce sharing restrictions based on the label's classification.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Purview DLP uses deep content analysis via sensitive information types (SITs) and machine learning classifiers to detect patterns like credit card numbers, even if they are embedded in larger documents or images. DLP policies in SharePoint and OneDrive can be configured with 'Block' actions that prevent external sharing at the point of attempt, and they can also trigger user notifications and policy tips to educate users in real time. A subtle behavior is that DLP in SharePoint Online evaluates content at rest and during sharing events, but it does not scan all content proactively unless a policy is applied to the site or library.
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 Loss Prevention (DLP) — Data Loss Prevention (DLP) in Microsoft Purview is the correct solution because it is specifically designed to identify, monitor, and automatically protect sensitive data like credit card numbers (using built-in sensitive information types such as Credit Card Number) across Microsoft 365 services, including SharePoint Online and OneDrive for Business. DLP policies can enforce rules to block or restrict external sharing of such data, directly meeting the requirement to prevent users from sharing sensitive data externally.
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.
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 →
Same concept, more angles
2 more ways this is tested on SC-900
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 company is implementing data loss prevention (DLP) policies in Microsoft Purview. You need to create a policy that prevents users from sharing credit card numbers via email to external recipients. The policy should only apply to users in the Finance department. Which action should you take?
medium- A.Create a retention label and apply auto-labeling for Finance
- B.Create a sensitivity label and publish it to Finance users
- C.Copy the default DLP template for financial data and modify it
- ✓ D.Create a DLP policy, select the Finance user location, and add the credit card number condition
Why D: Option C is correct because DLP policies in Microsoft Purview can be scoped to specific user groups via location selection. Option A is wrong because sensitivity labels are for classification, not DLP enforcement. Option B is wrong because retention labels are for data retention, not DLP. Option D is wrong because the policy should be created from scratch, not copied from a template that may not match the requirement.
Variation 2. Your company needs to detect and prevent employees from sharing confidential product plans via email with external parties. Which Microsoft Purview solution should you configure?
easy- A.Sensitivity labels
- B.Communication compliance
- ✓ C.Data Loss Prevention (DLP)
- D.Retention policies
Why C: Option B is correct because DLP policies can detect sensitive information and block external sharing. Option A is wrong because sensitivity labels classify but do not block. Option C is wrong because communication compliance monitors for inappropriate content, not data exfiltration. Option D is wrong because retention policies manage data lifecycle, not prevention.
Last reviewed: Jun 11, 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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