The answer is to create a retention label for 7 years, auto-apply that label to financial records, and configure a disposition review for deletion. This combination works because Microsoft Purview Data Lifecycle Management uses retention labels to enforce specific rules on content, while auto-labeling policies apply those labels automatically based on sensitive content types, and a disposition review ensures a final human check before permanent deletion, meeting regulatory compliance. On the SC-900 exam, this scenario tests your understanding of the difference between retention labels (which target specific items) and retention policies (which apply to entire locations), as well as the role of auto-apply versus DLP policies—a common trap is confusing DLP for lifecycle management. Remember the three-step sequence: label, auto-apply, review. A simple memory tip is "LAR" for Label, Auto-apply, Review.
SC-900 Practice Question: Describe the capabilities of Microsoft security solutions
This SC-900 practice question tests your understanding of describe the capabilities of microsoft security 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 uses Microsoft Purview Data Lifecycle Management. To comply with regulatory requirements, the company must retain financial records for 7 years and then delete them. Which THREE actions should the company configure? (Select THREE.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a retention label with a retention period of 7 years
Options A, B, and D are correct: Create a retention label for 7 years, auto-apply the label to financial content, and configure a disposition review for deletion. Option C is wrong because a DLP policy is for preventing data loss, not lifecycle management. Option E is wrong because a retention policy is for the entire location, not specific content.
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.
✗
Create a data loss prevention policy
Why it's wrong here
DLP is not for retention.
✗
Create a retention policy for the entire SharePoint site
Why it's wrong here
Retention policies apply to locations, not specific content.
✓
Create a retention label with a retention period of 7 years
Why this is correct
Retention labels define retention.
Related concept
Read the scenario before looking for a memorised answer.
✓
Configure a disposition review to confirm deletion
Why this is correct
Disposition review ensures proper deletion.
Related concept
Read the scenario before looking for a memorised answer.
✓
Create an auto-labeling policy to apply the retention label to financial records
Why this is correct
Auto-labeling automatically applies the label.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the capabilities of Microsoft security solutions — This question tests Describe the capabilities of Microsoft security solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a retention label with a retention period of 7 years — Options A, B, and D are correct: Create a retention label for 7 years, auto-apply the label to financial content, and configure a disposition review for deletion. Option C is wrong because a DLP policy is for preventing data loss, not lifecycle management. Option E is wrong because a retention policy is for the entire location, not specific content.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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