- A
Data Lifecycle Management (retention labels with auto-apply)
Retention labels with auto-apply policies can automatically label content based on keywords or sensitive info types, and enforce the specified retention and deletion settings.
- B
Data Loss Prevention (DLP)
Why wrong: DLP policies prevent sensitive data from being shared inappropriately but do not manage retention or deletion of content.
- C
eDiscovery (Standard)
Why wrong: eDiscovery (Standard) is used to search, preserve, and export content for legal or investigative purposes; it does not apply retention labels or automate deletion on a schedule.
- D
Audit
Why wrong: Audit logs user and admin activities for security and compliance investigations but does not apply labels or control retention/deletion.
Quick Answer
The answer is Data Lifecycle Management (DLM) with auto-apply retention labels. This solution is correct because it enables you to create a retention label that automatically applies to documents containing the keywords 'Invoice' or 'Statement' using a sensitive info type or trainable classifier, and then configures that label to retain the data for exactly seven years before triggering automatic deletion. On the SC-900 exam, this scenario tests your understanding of how auto-apply retention label keyword policies enforce lifecycle management without manual user intervention, and a common trap is confusing this with Records Management or Communication Compliance, which focus on legal holds or policy violations rather than automated retention and deletion. Remember that DLM is the engine for lifecycle actions like retain and delete, while auto-apply handles the keyword-based classification. A useful memory tip: think "DLM does the time, auto-apply finds the crime"—the label sets the retention period, and the keyword rule automatically catches the documents.
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 must retain all financial records for exactly 7 years and then automatically delete them. They need to automatically apply a retention label to any document that contains the words 'Invoice' or 'Statement'. Which Microsoft Purview solution should they 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
Data Lifecycle Management (retention labels with auto-apply)
Data Lifecycle Management (DLM) with auto-apply retention labels is the correct solution because it allows you to define a retention label that automatically applies to documents containing the keywords 'Invoice' or 'Statement' using a sensitive info type or trainable classifier. You can then configure the label to retain the data for exactly 7 years and trigger automatic deletion at the end of that period. This directly meets the requirement for both automated classification and lifecycle enforcement.
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 (retention labels with auto-apply)
Why this is correct
Retention labels with auto-apply policies can automatically label content based on keywords or sensitive info types, and enforce the specified retention and deletion settings.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Loss Prevention (DLP)
Why it's wrong here
DLP policies prevent sensitive data from being shared inappropriately but do not manage retention or deletion of content.
- ✗
eDiscovery (Standard)
Why it's wrong here
eDiscovery (Standard) is used to search, preserve, and export content for legal or investigative purposes; it does not apply retention labels or automate deletion on a schedule.
- ✗
Audit
Why it's wrong here
Audit logs user and admin activities for security and compliance investigations but does not apply labels or control retention/deletion.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse Data Lifecycle Management (which handles retention and deletion) with Data Loss Prevention (which handles security and access control), because both involve 'labels' and 'policies' in Microsoft Purview.
Detailed technical explanation
How to think about this question
Auto-apply retention labels in Data Lifecycle Management use either sensitive info types (e.g., built-in or custom regex patterns) or trainable classifiers to scan content at rest in SharePoint, OneDrive, and Exchange. The retention period is calculated from the date the content was created or labeled, and the 'disposition review' step can be skipped to enforce automatic deletion. A common subtlety is that auto-apply policies can take up to 7 days to process all existing items, but new items are labeled near real-time.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe the capabilities of Microsoft compliance solutions — study guide chapter
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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 (retention labels with auto-apply) — Data Lifecycle Management (DLM) with auto-apply retention labels is the correct solution because it allows you to define a retention label that automatically applies to documents containing the keywords 'Invoice' or 'Statement' using a sensitive info type or trainable classifier. You can then configure the label to retain the data for exactly 7 years and trigger automatic deletion at the end of that period. This directly meets the requirement for both automated classification and lifecycle enforcement.
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
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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