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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. 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.

You are the compliance administrator for a retail company that uses Microsoft 365 Business Premium. The company needs to: - Block customers' credit card numbers from being sent via email. - Retain all sales invoices for 3 years as per financial regulations. - Allow managers to search and export employee emails for HR investigations. - Ensure that only HR can access employee salary information. Which Microsoft Purview solutions should you use?

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

DLP, Data Lifecycle Management, eDiscovery, and sensitivity labels

Option B is correct because DLP (Data Loss Prevention) blocks credit card numbers from being sent via email, Data Lifecycle Management retains sales invoices for 3 years, eDiscovery allows managers to search and export employee emails for HR investigations, and sensitivity labels restrict access to salary information to HR only. Each requirement maps directly to a specific Purview solution: DLP for sensitive data protection, retention policies for compliance, eDiscovery for legal/HR investigations, and sensitivity labels for access control.

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.

  • DLP, Information Barriers, eDiscovery, and sensitivity labels

    Why it's wrong here

    Information Barriers do not manage retention.

  • DLP, Data Lifecycle Management, eDiscovery, and sensitivity labels

    Why this is correct

    All requirements are met.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Insider Risk Management, Data Lifecycle Management, eDiscovery, and sensitivity labels

    Why it's wrong here

    Insider Risk Management is not needed; DLP is required to block sharing.

  • Communication Compliance, Data Lifecycle Management, eDiscovery, and sensitivity labels

    Why it's wrong here

    Communication Compliance does not block credit card sharing.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates confuse Information Barriers (which restrict communication between groups) with DLP (which blocks sensitive data patterns), or assume Insider Risk Management or Communication Compliance can replace DLP for proactive blocking of credit card numbers in email.

Detailed technical explanation

How to think about this question

DLP policies in Microsoft Purview use built-in sensitive information types (e.g., Credit Card Number with regex and checksum validation per Luhn algorithm) to detect and block emails containing such data. Data Lifecycle Management leverages retention labels and policies that apply a retention period (e.g., 3 years) and then trigger a disposition review or deletion. eDiscovery uses content searches and holds to locate and export mailbox items, while sensitivity labels apply encryption and permissions (e.g., 'HR Only' rights) via Azure Information Protection, ensuring only authorized users can decrypt salary data.

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.

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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: DLP, Data Lifecycle Management, eDiscovery, and sensitivity labels — Option B is correct because DLP (Data Loss Prevention) blocks credit card numbers from being sent via email, Data Lifecycle Management retains sales invoices for 3 years, eDiscovery allows managers to search and export employee emails for HR investigations, and sensitivity labels restrict access to salary information to HR only. Each requirement maps directly to a specific Purview solution: DLP for sensitive data protection, retention policies for compliance, eDiscovery for legal/HR investigations, and sensitivity labels for access control.

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.