- A
Sensitivity labels
Why wrong: Sensitivity labels can classify and protect content but cannot prevent deletion or modification (unless combined with other mechanisms) and do not natively support retention schedules.
- B
Records Management
Records Management allows you to mark items as records to prevent editing/deletion and assign retention labels with specific schedules and disposition actions.
- C
Data Loss Prevention (DLP) policy
Why wrong: DLP policies detect and block sharing of sensitive data, they do not prevent modification or manage retention.
- D
Data Lifecycle Management
Why wrong: Data Lifecycle Management (retention policies/labels) can enforce retention and deletion, but it does not make items immutable (records) to prevent modification or deletion by users.
Quick Answer
The answer is Records Management, because it is the Microsoft Purview solution specifically designed for immutable retention and manual disposal of regulated content. By declaring a signed contract as a record, you lock it against any modification or deletion, directly satisfying the requirement that contracts cannot be altered after signing. Records Management also supports event-based retention, which allows you to trigger a 10-year retention period starting from the contract end date, and then permits manual disposal once that period expires. On the SC-900 exam, this scenario tests your ability to distinguish Records Management from simpler retention policies or labels—a common trap is confusing it with a standard retention label, which does not enforce immutability. Remember the key distinction: a record is a document that is declared as such, making it legally locked and uneditable, whereas a regular retention label only prevents deletion but allows edits. A useful memory tip is "Record = Read-only + Retention," meaning once declared, it cannot be changed and must be kept for the required duration.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 has a SharePoint Online library containing legal contracts. They must satisfy a regulatory requirement that contracts cannot be modified or deleted after they are signed. Additionally, they need to retain the contracts for 10 years after the contract end date, after which they can be disposed of manually. Which Microsoft Purview solution should they implement?
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
Records Management
Records Management in Microsoft Purview allows you to declare items as records, which locks them against modification or deletion (meeting the 'cannot be modified or deleted' requirement). It also supports event-based retention, enabling you to start a 10-year retention period from the contract end date and then allow manual disposal after that period expires.
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.
- ✗
Sensitivity labels
Why it's wrong here
Sensitivity labels can classify and protect content but cannot prevent deletion or modification (unless combined with other mechanisms) and do not natively support retention schedules.
- ✓
Records Management
Why this is correct
Records Management allows you to mark items as records to prevent editing/deletion and assign retention labels with specific schedules and disposition actions.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Loss Prevention (DLP) policy
Why it's wrong here
DLP policies detect and block sharing of sensitive data, they do not prevent modification or manage retention.
- ✗
Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management (retention policies/labels) can enforce retention and deletion, but it does not make items immutable (records) to prevent modification or deletion by users.
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 Records Management (which adds immutability and legal hold capabilities), leading them to pick D when the question explicitly requires preventing modification and deletion, not just retention.
Detailed technical explanation
How to think about this question
Records Management uses a 'locked record' designation that applies a strict write-once-read-many (WORM) state at the item level in SharePoint, enforced via the item's metadata and the underlying content database. Event-based retention triggers the retention period from a specified event (e.g., contract end date) rather than a fixed date, which is critical for contracts where the end date varies. Manual disposal after 10 years is achieved by setting a retention label with a 'start retention based on event' rule and then allowing disposition review or manual deletion after the period ends.
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.
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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: Records Management — Records Management in Microsoft Purview allows you to declare items as records, which locks them against modification or deletion (meeting the 'cannot be modified or deleted' requirement). It also supports event-based retention, enabling you to start a 10-year retention period from the contract end date and then allow manual disposal after that period expires.
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.
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
1 more ways this is tested on SC-900
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. A company must retain all vendor contracts for 10 years to meet regulatory requirements. After 10 years, the contracts must be permanently destroyed with no possibility of recovery. The compliance team wants to automate this lifecycle and ensure that during the retention period, the contracts cannot be edited or deleted by users. Which Microsoft Purview solution should they use?
medium- A.Data Lifecycle Management (DLM)
- ✓ B.Records Management
- C.eDiscovery (Premium)
- D.Sensitivity Labels
Why B: Records Management in Microsoft Purview is designed to declare records (regulatory or legal) that must be retained for a specific period and then disposed of in a compliant manner. It enforces immutability during the retention period—users cannot edit or delete records—and supports a disposition review or automatic permanent deletion after the retention period ends, exactly matching the requirement for 10-year retention followed by destruction with no recovery.
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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