Question 777 of 1,250
SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
An organization uses Microsoft Purview Information Protection. They want to ensure that when a user manually applies a 'Highly Confidential' sensitivity label to a document, the label is automatically applied to any new content pasted from that document into another app. Which configuration should they enable?
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
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Marking content as sensitive
Microsoft Purview Information Protection's 'marking content as sensitive' feature (also known as content marking) ensures that when a user manually applies a sensitivity label, the label is automatically applied to any new content pasted from that document into another app. This is achieved through automatic marking that tracks the label even when content is copied. Option B (Data Loss Prevention policies) is incorrect because DLP policies enforce rules to prevent data loss but do not automatically apply labels to copied content. Option C (Encryption with rights management) is incorrect because encryption protects content but does not propagate labels across copy-paste. Option D (Auto-labeling policies) is incorrect because auto-labeling automatically classifies content based on conditions, not manual application.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Marking content as sensitive
Why this is correct
Marking content as sensitive involves applying a Microsoft Purview sensitivity label, which embeds persistent metadata directly within the file or email. This embedded metadata is the core mechanism that allows the sensitivity label to be tracked and recognized across various Microsoft 365 services and applications. Consequently, when content is copied, moved, or shared, the label's properties and associated protection policies (e.g., encryption, visual markings) travel with the data, ensuring consistent information protection.
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Data Loss Prevention policies
Why it's wrong here
Data Loss Prevention (DLP) policies are designed to identify, monitor, and prevent the unauthorized sharing or exfiltration of sensitive information based on its content or existing labels. While DLP policies can detect sensitivity labels and enforce actions like blocking sharing or alerting administrators, their primary function is to prevent data loss, not to embed and track the persistence of a sensitivity label's metadata within the content itself when it is copied or pasted. DLP acts on data in transit or at rest, but doesn't inherently carry the label's tracking information.
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Encryption with rights management
Why it's wrong here
Encryption, often implemented through Azure Information Protection (AIP) rights management, secures content by restricting who can access it and what actions they can perform (e.g., print, edit). While encryption is a powerful protective action frequently applied by a sensitivity label, it is not the mechanism that tracks the label's presence or persistence when the underlying content is copied. The label's embedded metadata, not just the encryption, is responsible for ensuring the sensitivity classification travels with the data.
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Auto-labeling policies
Why it's wrong here
Auto-labeling policies in Microsoft Purview automatically apply sensitivity labels to content based on predefined conditions, such as the presence of specific sensitive information types or keywords. While auto-labeling is crucial for scalable and consistent classification of data, its function is to assign a label initially or retrospectively. It does not provide the underlying mechanism that tracks the label's metadata and ensures its persistence when the content is subsequently copied, pasted, or moved; that tracking is an inherent property of the label itself.
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Last reviewed: Jun 21, 2026
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