- A
Data Lifecycle Management
Retention labels can auto-classify data at rest.
- B
Communication Compliance
Why wrong: Monitors communications, not classification.
- C
eDiscovery
Why wrong: eDiscovery searches data, does not classify.
- D
Auditing
Why wrong: Auditing tracks events, not classification.
- E
Information Protection
Auto-labeling policies classify data at rest.
Question 226 of 1,411
Using Data Lifecycle Management and Information Protection for Automatic Classification of Data at Rest
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.
Which TWO Microsoft Purview solutions can be used to automatically classify sensitive data at rest?
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 Lifecycle Management
Data Lifecycle Management (DLM) automatically classifies sensitive data at rest by applying retention labels based on sensitive content detection, such as credit card numbers or social security numbers, using trainable classifiers or exact data match. Information Protection (IP) extends this by enabling automatic labeling of documents and emails based on sensitive information types, ensuring data is classified and protected while stored in SharePoint, OneDrive, or Exchange Online.
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 Lifecycle Management
Why this is correct
Retention labels can auto-classify data at rest.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Communication Compliance
Why it's wrong here
Monitors communications, not classification.
- ✗
eDiscovery
Why it's wrong here
eDiscovery searches data, does not classify.
- ✗
Auditing
Why it's wrong here
Auditing tracks events, not classification.
- ✓
Information Protection
Why this is correct
Auto-labeling policies classify data at rest.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Communication Compliance (which monitors communications) with Information Protection (which classifies data), or they think eDiscovery or Auditing can classify data, when in fact they are reactive or investigative tools, not proactive classification solutions.
Detailed technical explanation
How to think about this question
Under the hood, both DLM and IP leverage the Microsoft 365 unified labeling platform, which uses the same sensitivity labels and conditions defined in the Microsoft Purview compliance portal. Automatic classification for data at rest relies on the Content Explorer and Activity Explorer to monitor labeled items, and the process is triggered by the Exchange Online mail flow, SharePoint Online item creation/modification, or OneDrive sync, using pattern matching via the Microsoft 365 Data Classification Service. A real-world scenario is automatically labeling a batch of legacy documents containing PII stored in SharePoint, ensuring they are retained or deleted according to policy without manual intervention.
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 Lifecycle Management — Data Lifecycle Management (DLM) automatically classifies sensitive data at rest by applying retention labels based on sensitive content detection, such as credit card numbers or social security numbers, using trainable classifiers or exact data match. Information Protection (IP) extends this by enabling automatic labeling of documents and emails based on sensitive information types, ensuring data is classified and protected while stored in SharePoint, OneDrive, or Exchange Online.
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: Jul 4, 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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