Quick Answer
The answer is sensitivity labels, auto-labeling, and encryption and rights protection. These three capabilities form the core of Microsoft Purview Information Protection because they work together to classify, protect, and govern sensitive data wherever it lives or travels. Sensitivity labels apply classification markings, auto-labeling uses machine learning to recommend or enforce labels based on content patterns, and encryption with rights protection ensures only authorized users can access or modify the data. On the SC-900 exam, this question tests your ability to distinguish Information Protection from other Purview solutions; a common trap is confusing retention policies, which belong to Data Lifecycle Management, or communication monitoring, which falls under Communication Compliance. To remember the correct trio, think of the "label, lock, and learn" cycle: you label the data, lock it with encryption, and let the system learn to auto-label.
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.
Which THREE of the following are capabilities of Microsoft Purview Information Protection?
Auto-labeling for sensitive data
Auto-labeling is a feature of Information Protection.
Communication monitoring
Why wrong: Communication monitoring is Communication Compliance.
Sensitivity labels
Sensitivity labels are a core component of Information Protection.
Encryption and rights protection
Information Protection includes encryption.
Retention policies
Why wrong: Retention policies belong to Data Lifecycle Management.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Auto-labeling for sensitive data
A, C, D are correct. Sensitivity labels, auto-labeling, and encryption are key capabilities. B (retention policies) is Data Lifecycle Management. E (communication monitoring) is Communication Compliance.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Auto-labeling for sensitive data
Why this is correct
Auto-labeling is a feature of Information Protection.
Related concept
Read the scenario before looking for a memorised answer.
Communication monitoring
Why it's wrong here
Communication monitoring is Communication Compliance.
Sensitivity labels
Why this is correct
Sensitivity labels are a core component of Information Protection.
Related concept
Read the scenario before looking for a memorised answer.
Encryption and rights protection
Why this is correct
Information Protection includes encryption.
Related concept
Read the scenario before looking for a memorised answer.
Retention policies
Why it's wrong here
Retention policies belong to Data Lifecycle Management.
Common exam traps
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
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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.
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FAQ
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..
The correct answer is: Auto-labeling for sensitive data — A, C, D are correct. Sensitivity labels, auto-labeling, and encryption are key capabilities. B (retention policies) is Data Lifecycle Management. E (communication monitoring) is Communication Compliance.
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.
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO of the following are capabilities of Microsoft Purview Information Protection?
mediumWhy D: Option A is correct because sensitivity labels are a core part of Information Protection. Option D is correct because encryption with Azure Rights Management is a protection action. Option B is wrong because retention is part of data lifecycle management. Option C is wrong because DLP is a separate solution. Option E is wrong because eDiscovery is for search.
Variation 2. A company must implement data classification labels in Microsoft Purview to protect sensitive information. Which TWO actions are required to create and publish a sensitivity label?
mediumWhy C: Option A is correct because labels are created in the Microsoft Purview compliance portal. Option D is correct because labels must be published via a label policy. Option B is wrong because auto-labeling is a separate feature, not a requirement for creating a label. Option C is wrong because label creation doesn't require scoping. Option E is wrong because labels are not published via Microsoft Intune.
Last reviewed: Jun 21, 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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