The correct answer is an auto-labeling policy. This policy is the right choice because it is specifically designed to automatically apply sensitivity labels—such as 'Confidential'—to emails and documents based on conditions like the presence of sensitive information types, including credit card numbers. Unlike sensitivity label policies, which only publish labels for manual user selection, or DLP policies, which enforce protective actions without applying labels, auto-labeling policies scan content in transit or at rest and assign labels automatically. On the SC-900 exam, this question tests your understanding of how Microsoft Purview Information Protection components differ in their automation capabilities; a common trap is confusing auto-labeling with DLP policies, but remember that DLP blocks or alerts while auto-labeling actually stamps the label. For a quick memory tip, think "Auto-labeling = automatic label application based on sensitive data patterns," and contrast it with "DLP = action enforcement without labeling."
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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 is implementing Microsoft Purview Information Protection. They want to automatically apply a 'Confidential' sensitivity label to emails containing credit card numbers. Which policy should they configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Auto-labeling policy
Option C is correct because auto-labeling policies in Microsoft Purview can automatically apply sensitivity labels based on sensitive information types like credit card numbers. Option A is incorrect because sensitivity label policies publish labels for manual assignment. Option B is incorrect because DLP policies enforce actions but do not apply labels automatically. Option D is incorrect because retention policies manage data retention, not labeling.
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.
✓
Auto-labeling policy
Why this is correct
Auto-labeling policies apply labels automatically based on sensitive information types.
Related concept
Read the scenario before looking for a memorised answer.
✗
Retention policy
Why it's wrong here
Retention policies specify how long to retain or delete data.
✗
Sensitivity label policy
Why it's wrong here
Sensitivity label policies publish labels for users to apply manually.
✗
Data loss prevention (DLP) policy
Why it's wrong here
DLP policies detect and prevent sharing of sensitive data but do not automatically apply labels.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Auto-labeling policy — Option C is correct because auto-labeling policies in Microsoft Purview can automatically apply sensitivity labels based on sensitive information types like credit card numbers. Option A is incorrect because sensitivity label policies publish labels for manual assignment. Option B is incorrect because DLP policies enforce actions but do not apply labels automatically. Option D is incorrect because retention policies manage data retention, not labeling.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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