- A
Information Protection
Sensitivity labels in Information Protection can auto-classify and encrypt documents based on sensitive content.
- B
Data Loss Prevention
Why wrong: DLP policies monitor and restrict sharing of sensitive data but do not automatically apply labels.
- C
Data Lifecycle Management
Why wrong: Data Lifecycle Management governs retention and deletion, not classification or encryption.
- D
Records Management
Why wrong: Records Management handles declaratory retention and disposition, not automatic labeling based on content.
Question 160 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.
A company stores financial reports in SharePoint Online that contain credit card numbers. The compliance team needs to automatically apply a sensitivity label that encrypts the documents when they detect credit card data. Which Microsoft Purview solution should they configure?
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
✓
Information Protection
Microsoft Purview Information Protection (A) is the correct solution because it enables the creation of auto-labeling policies that can automatically apply a sensitivity label with encryption when credit card numbers are detected in SharePoint Online documents. This directly addresses the requirement to classify and protect sensitive data at rest based on content inspection.
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.
- ✓
Information Protection
Why this is correct
Sensitivity labels in Information Protection can auto-classify and encrypt documents based on sensitive content.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Loss Prevention
Why it's wrong here
DLP policies monitor and restrict sharing of sensitive data but do not automatically apply labels.
When this WOULD be correct
A company needs to prevent users from sharing credit card numbers via email or SharePoint by blocking the transmission or warning the user. In that scenario, Data Loss Prevention would be the correct solution.
- ✗
Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management governs retention and deletion, not classification or encryption.
- ✗
Records Management
Why it's wrong here
Records Management handles declaratory retention and disposition, not automatic labeling based on content.
When this WOULD be correct
An organization needs to retain financial documents for a regulatory period of 7 years and then automatically delete them. Records Management would be the correct solution to define retention labels and disposition rules.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The SC-900 exam frequently reuses these exact scenarios with slightly different constraints.
✓Information ProtectionCorrect answer▾
Why this is correct
Sensitivity labels in Information Protection can auto-classify and encrypt documents based on sensitive content.
✗Data Loss PreventionWrong answer — click to see why▾
Why this is wrong here
Data Loss Prevention (DLP) policies can detect credit card numbers and block or warn users, but they do not automatically apply sensitivity labels or encrypt documents. The requirement is to label and encrypt, which is a function of Information Protection.
★ When this WOULD be the correct answer
A company needs to prevent users from sharing credit card numbers via email or SharePoint by blocking the transmission or warning the user. In that scenario, Data Loss Prevention would be the correct solution.
Why candidates choose this
Candidates often confuse DLP with sensitivity labels because both involve detecting sensitive data like credit card numbers, but DLP focuses on preventing data loss through actions like blocking sharing, not on labeling or encryption.
✗Records ManagementWrong answer — click to see why▾
Why this is wrong here
Records Management is used for managing retention and disposition of records, not for automatically applying sensitivity labels based on content detection like credit card numbers.
★ When this WOULD be the correct answer
An organization needs to retain financial documents for a regulatory period of 7 years and then automatically delete them. Records Management would be the correct solution to define retention labels and disposition rules.
Why candidates choose this
Candidates may confuse Records Management with Information Protection because both involve labeling, but Records Management focuses on retention and deletion, not on encryption or content-based classification.
Analysis generated from the official SC-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the detection and blocking capabilities of Data Loss Prevention (DLP) with the automatic classification and encryption features of Information Protection, assuming DLP can also apply labels, when in fact DLP only monitors and controls data in motion or at rest without modifying the document's protection settings.
Detailed technical explanation
How to think about this question
Auto-labeling in Information Protection uses sensitive info types (e.g., Credit Card Number) defined by regular expression patterns and checksums (Luhn algorithm) to match content. When a match occurs, the policy can apply a label that triggers encryption via Azure Rights Management (Azure RMS), using AES-256 to protect the document. In a real-world scenario, a compliance team might combine this with a DLP policy to also block external sharing of the encrypted document, providing layered protection.
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: Information Protection — Microsoft Purview Information Protection (A) is the correct solution because it enables the creation of auto-labeling policies that can automatically apply a sensitivity label with encryption when credit card numbers are detected in SharePoint Online documents. This directly addresses the requirement to classify and protect sensitive data at rest based on content inspection.
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
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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