- A
Microsoft Purview Retention Labels with a disposition review that requires manual approval at the end of the retention period
Why wrong: A disposition review with manual approval does not guarantee automatic deletion; it would require someone to manually approve each item.
- B
Microsoft Purview Retention Policy with a record label to mark items as regulatory records
Why wrong: Marking items as regulatory records makes them immutable and prevents modification or deletion, even after the retention period, so automatic deletion would not occur.
- C
Microsoft Purview Data Lifecycle Management using a retention policy configured to retain items for 7 years and then delete them automatically
A retention policy can be set to retain content for a specified period and then automatically delete it, meeting both the preservation and automatic deletion requirements without manual steps.
- D
Microsoft Purview eDiscovery with a hold policy to preserve the documents indefinitely
Why wrong: eDiscovery hold is for preserving data for legal investigations; it does not enforce a retention period with automatic deletion.
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 financial services company must comply with a regulation that requires all audit-related documents to be retained for 7 years and then permanently deleted. The compliance officer wants to ensure that even if a user modifies or deletes a file, the original content is preserved for the full 7 years, and at the end of the period the files are automatically destroyed without any manual approval. The company uses Microsoft 365 and stores these documents in SharePoint Online and Microsoft Teams. Which Microsoft Purview solution should the compliance officer 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
Microsoft Purview Data Lifecycle Management using a retention policy configured to retain items for 7 years and then delete them automatically
Option C is correct because Microsoft Purview Data Lifecycle Management allows you to create a retention policy that retains items for a fixed period (7 years) and then automatically deletes them without any manual intervention. This meets the regulatory requirement for automatic destruction at the end of the retention period, and the policy applies to both SharePoint Online and Microsoft Teams, preserving the original content even if a user modifies or deletes the file.
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.
- ✗
Microsoft Purview Retention Labels with a disposition review that requires manual approval at the end of the retention period
Why it's wrong here
A disposition review with manual approval does not guarantee automatic deletion; it would require someone to manually approve each item.
When this WOULD be correct
A company needs to retain documents for 5 years, but at the end of the period, a compliance officer must manually review and approve each file for deletion to ensure no legal holds apply.
- ✗
Microsoft Purview Retention Policy with a record label to mark items as regulatory records
Why it's wrong here
Marking items as regulatory records makes them immutable and prevents modification or deletion, even after the retention period, so automatic deletion would not occur.
When this WOULD be correct
This option would be correct if the question required that documents be marked as regulatory records to prevent modification or deletion by users, and the retention period was enforced with a disposition review requiring manager approval before deletion.
- ✓
Microsoft Purview Data Lifecycle Management using a retention policy configured to retain items for 7 years and then delete them automatically
Why this is correct
A retention policy can be set to retain content for a specified period and then automatically delete it, meeting both the preservation and automatic deletion requirements without manual steps.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Purview eDiscovery with a hold policy to preserve the documents indefinitely
Why it's wrong here
eDiscovery hold is for preserving data for legal investigations; it does not enforce a retention period with automatic deletion.
When this WOULD be correct
A company is facing litigation and must preserve all documents related to a specific case until the legal matter is resolved, regardless of any existing retention policies. The compliance officer needs to ensure no documents are deleted or modified during the legal hold period.
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.
✓Microsoft Purview Data Lifecycle Management using a retention policy configured to retain items for 7 years and then delete them automaticallyCorrect answer▾
Why this is correct
A retention policy can be set to retain content for a specified period and then automatically delete it, meeting both the preservation and automatic deletion requirements without manual steps.
✗Microsoft Purview Retention Labels with a disposition review that requires manual approval at the end of the retention periodWrong answer — click to see why▾
Why this is wrong here
The requirement specifies automatic deletion without manual approval, but a disposition review requires manual approval at the end of the retention period, which contradicts the need for automatic destruction.
★ When this WOULD be the correct answer
A company needs to retain documents for 5 years, but at the end of the period, a compliance officer must manually review and approve each file for deletion to ensure no legal holds apply.
Why candidates choose this
Candidates may confuse retention labels with retention policies, or assume that a disposition review is always required for compliance, overlooking the specific need for automatic deletion.
✗Microsoft Purview Retention Policy with a record label to mark items as regulatory recordsWrong answer — click to see why▾
Why this is wrong here
The requirement demands automatic deletion after 7 years without manual approval, but a retention policy with record labels does not automatically delete; it requires a disposition review or manual action. Additionally, regulatory records prevent deletion, not enforce it.
★ When this WOULD be the correct answer
This option would be correct if the question required that documents be marked as regulatory records to prevent modification or deletion by users, and the retention period was enforced with a disposition review requiring manager approval before deletion.
Why candidates choose this
Candidates may confuse 'record label' with the ability to enforce retention and deletion, or think that marking as a regulatory record automatically triggers deletion, not realizing it primarily prevents alteration and requires manual disposition.
✗Microsoft Purview eDiscovery with a hold policy to preserve the documents indefinitelyWrong answer — click to see why▾
Why this is wrong here
eDiscovery hold policies preserve content indefinitely or until the hold is removed, but they do not enforce automatic deletion after a fixed retention period. The requirement is for automatic deletion after 7 years, not indefinite preservation.
★ When this WOULD be the correct answer
A company is facing litigation and must preserve all documents related to a specific case until the legal matter is resolved, regardless of any existing retention policies. The compliance officer needs to ensure no documents are deleted or modified during the legal hold period.
Why candidates choose this
Candidates may confuse preservation for legal purposes with retention for compliance, thinking that a hold can also enforce deletion, or they may assume that eDiscovery can manage retention schedules.
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 retention policies with record labels or eDiscovery holds, mistakenly thinking that marking items as records or placing them on hold satisfies the automatic deletion requirement, but these options either require manual approval or preserve data indefinitely, failing the 'automatically destroyed' condition.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Purview Data Lifecycle Management uses retention policies that apply to SharePoint Online document libraries and Teams channel messages/files. When a retention policy is configured with a retention period and a deletion action, it creates a 'preservation hold' that captures the original version of any modified or deleted item, storing it in the Preservation Hold library. After the retention period expires, the system automatically purges the data via a background process that runs every 7 days, ensuring compliance 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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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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: Microsoft Purview Data Lifecycle Management using a retention policy configured to retain items for 7 years and then delete them automatically — Option C is correct because Microsoft Purview Data Lifecycle Management allows you to create a retention policy that retains items for a fixed period (7 years) and then automatically deletes them without any manual intervention. This meets the regulatory requirement for automatic destruction at the end of the retention period, and the policy applies to both SharePoint Online and Microsoft Teams, preserving the original content even if a user modifies or deletes the file.
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
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