Question 992 of 1,411

Describe the capabilities of Microsoft compliance solutions →mediumMultiple SelectObjective-mapped

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 wants to automatically apply a 'Confidential' sensitivity label to any document that contains a credit card number, and also encrypt the document as part of the label. Which two components must be configured to achieve this? (Choose two.)

A
A sensitivity label with encryption settings
Correct. The sensitivity label must define the protection (encryption) that will be applied to documents containing credit card numbers.
B
A DLP policy that detects sensitive info
Why wrong: Incorrect. DLP policies are focused on actions like blocking or notifying when sensitive data is shared. Auto-labeling is accomplished via a separate auto-labeling policy, not DLP.
C
An auto-labeling policy
Correct. The auto-labeling policy applies the sensitivity label automatically to documents that match specified conditions (e.g., containing a credit card number).
D
A data classification dashboard
Why wrong: Incorrect. The data classification dashboard provides reports and visibility into classified data, but it does not perform automatic labeling.

Full breakdown with real-world context →

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

✓

A sensitivity label with encryption settings

Option A is correct because a sensitivity label must include encryption settings to automatically encrypt documents when the label is applied. The encryption is configured within the label's protection settings, which defines how content is protected (e.g., with a predefined template or user-defined permissions). Without encryption configured in the label, the automatic application would only assign the label without encrypting the document.

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.

✓
A sensitivity label with encryption settings
Why this is correct
Correct. The sensitivity label must define the protection (encryption) that will be applied to documents containing credit card numbers.
Related concept
Read the scenario before looking for a memorised answer.
✗
A DLP policy that detects sensitive info
Why it's wrong here
Incorrect. DLP policies are focused on actions like blocking or notifying when sensitive data is shared. Auto-labeling is accomplished via a separate auto-labeling policy, not DLP.
When this WOULD be correct
A company wants to block emails containing credit card numbers from being sent externally. Which component should be configured? (A DLP policy that detects sensitive info and enforces action.)
✓
An auto-labeling policy
Why this is correct
Correct. The auto-labeling policy applies the sensitivity label automatically to documents that match specified conditions (e.g., containing a credit card number).
Related concept
Read the scenario before looking for a memorised answer.
✗
A data classification dashboard
Why it's wrong here
Incorrect. The data classification dashboard provides reports and visibility into classified data, but it does not perform automatic labeling.

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.

✓A sensitivity label with encryption settingsCorrect answer▾

Why this is correct

Correct. The sensitivity label must define the protection (encryption) that will be applied to documents containing credit card numbers.

✗A DLP policy that detects sensitive infoWrong answer — click to see why▾

Why this is wrong here

A DLP policy detects sensitive info but does not automatically apply sensitivity labels or encryption; it only triggers alerts or blocks actions. The question requires automatic labeling and encryption, which is handled by auto-labeling policies and sensitivity labels, not DLP.

★ When this WOULD be the correct answer

A company wants to block emails containing credit card numbers from being sent externally. Which component should be configured? (A DLP policy that detects sensitive info and enforces action.)

Why candidates choose this

Candidates may confuse DLP's detection of sensitive data with the ability to automatically apply labels, as both involve sensitive info types and can be triggered by content matching.

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 often confuse DLP policies with auto-labeling policies, thinking DLP can apply labels and encryption, but DLP only detects and acts on content (e.g., block or notify) and does not apply sensitivity labels.

Detailed technical explanation

How to think about this question

Auto-labeling policies in Microsoft Purview use conditions based on sensitive info types (e.g., credit card numbers) to automatically apply a sensitivity label. The label itself must have encryption enabled via Azure Rights Management (Azure RMS) to enforce protection; without this, the label is merely a metadata tag. In a real-world scenario, a company might combine a DLP policy to block external sharing of unlabeled credit card data, but the auto-labeling policy is the mechanism that applies the label and encryption.

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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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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: A sensitivity label with encryption settings — Option A is correct because a sensitivity label must include encryption settings to automatically encrypt documents when the label is applied. The encryption is configured within the label's protection settings, which defines how content is protected (e.g., with a predefined template or user-defined permissions). Without encryption configured in the label, the automatic application would only assign the label without encrypting the document.

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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