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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. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.

An organization has a Microsoft Purview Data Lifecycle Management policy that retains all documents for 5 years. However, legal requires that documents related to a specific lawsuit be preserved indefinitely. What should you do?

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

Place the relevant sites on litigation hold

Litigation hold (now called legal hold in Microsoft Purview) preserves all content in a SharePoint site or OneDrive account indefinitely, overriding any retention policy. This ensures documents related to the lawsuit are not deleted or altered, even if a Data Lifecycle Management policy would otherwise remove them after 5 years. The hold applies at the site level, not to individual items, and prevents both deletion and modification.

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.

  • Configure information barriers

    Why it's wrong here

    Information barriers restrict communication, not preservation.

  • Place the relevant sites on litigation hold

    Why this is correct

    Litigation hold preserves content indefinitely for legal purposes.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Apply a retention label with indefinite retention

    Why it's wrong here

    Retention labels can have indefinite retention but litigation hold is more appropriate for legal matters.

  • Create a DLP policy to block deletion

    Why it's wrong here

    DLP does not preserve content.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates confuse retention labels (which require manual or automatic application to individual items) with litigation hold (which applies to an entire site or OneDrive account), leading them to choose option C despite its impracticality for bulk preservation.

Detailed technical explanation

How to think about this question

Litigation hold in SharePoint Online works by placing the site in a read-only state for all users except site collection administrators, and it preserves all versions and metadata. Under the hood, it uses the 'Hold' feature in the SharePoint Online Management Shell, which sets the `-LockState` to `ReadOnly` and enables the `-NoExpiration` flag on the site. In a real-world scenario, if a lawsuit involves thousands of documents across multiple sites, litigation hold ensures compliance without requiring manual labeling or policy exceptions.

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

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: Place the relevant sites on litigation hold — Litigation hold (now called legal hold in Microsoft Purview) preserves all content in a SharePoint site or OneDrive account indefinitely, overriding any retention policy. This ensures documents related to the lawsuit are not deleted or altered, even if a Data Lifecycle Management policy would otherwise remove them after 5 years. The hold applies at the site level, not to individual items, and prevents both deletion and modification.

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

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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.