- A
Retention policy
A retention policy in Microsoft Purview allows administrators to set a retention period (e.g., 5 years) and an action (such as automatic deletion) for content in SharePoint sites. Users cannot permanently delete the content until the retention period expires.
- B
Sensitivity label
Why wrong: Sensitivity labels are used to apply classification, encryption, and visual markings to documents. They do not enforce retention or deletion schedules by themselves.
- C
Data loss prevention (DLP) policy
Why wrong: DLP policies detect and prevent sensitive information from being shared inappropriately. They do not enforce content retention or deletion.
- D
Audit policy
Why wrong: Audit policies enable logging of activities for auditing purposes. They do not directly control retention or deletion of content.
Quick Answer
The answer is a retention policy. This is the correct choice because a retention policy in Microsoft Purview enforces mandatory retention and deletion settings at the site or container level, ensuring that all documents in a SharePoint Online site are retained for exactly five years from creation and then automatically deleted, while preventing users from permanently deleting any content before that period ends. On the SC-900 exam, this question tests your understanding of the distinction between retention policies, which apply broadly to enforce compliance, and retention labels, which are used for flexible, item-level classification and can be applied manually or automatically by users. A common trap is confusing the two: remember that a retention policy is like a mandatory rule for an entire location, whereas a label is more like a tag for specific items. For a quick memory tip, think "Policy for the place, label for the face" — policies govern entire sites or mailboxes, while labels mark individual documents or emails.
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 has a SharePoint Online site that stores project documents. Due to legal requirements, all documents in this site must be retained for exactly 5 years from the date they were created, and then automatically deleted. No user should be able to permanently delete a document before the retention period ends. Which Microsoft Purview solution should the administrator configure?
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
Retention policy
Option A is correct because a retention policy in Microsoft Purview can be configured to retain documents for exactly 5 years from creation and then automatically delete them. This policy enforces a mandatory retention period that prevents users from permanently deleting documents before the period ends, meeting the legal requirement.
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.
- ✓
Retention policy
Why this is correct
A retention policy in Microsoft Purview allows administrators to set a retention period (e.g., 5 years) and an action (such as automatic deletion) for content in SharePoint sites. Users cannot permanently delete the content until the retention period expires.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Sensitivity label
Why it's wrong here
Sensitivity labels are used to apply classification, encryption, and visual markings to documents. They do not enforce retention or deletion schedules by themselves.
- ✗
Data loss prevention (DLP) policy
Why it's wrong here
DLP policies detect and prevent sensitive information from being shared inappropriately. They do not enforce content retention or deletion.
- ✗
Audit policy
Why it's wrong here
Audit policies enable logging of activities for auditing purposes. They do not directly control retention or deletion of content.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse a retention policy with a sensitivity label or DLP policy, mistakenly thinking those can enforce time-based retention and deletion, when only a retention policy provides the necessary preservation lock and automatic deletion capabilities.
Detailed technical explanation
How to think about this question
A retention policy applies at the site level and uses a preservation lock to prevent users from shortening the retention period. Under the hood, the policy leverages the Microsoft Purview Compliance Portal to place a hold on documents, ensuring they cannot be permanently deleted until the retention period expires, after which a disposition review or automatic deletion occurs. In real-world scenarios, this is critical for legal holds or regulatory compliance where data must be retained for a fixed duration without user override.
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
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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: Retention policy — Option A is correct because a retention policy in Microsoft Purview can be configured to retain documents for exactly 5 years from creation and then automatically delete them. This policy enforces a mandatory retention period that prevents users from permanently deleting documents before the period ends, meeting the legal requirement.
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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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. Your company uses Microsoft Purview to manage records. You need to ensure that financial records are retained for 7 years and then permanently deleted. Which type of policy should you create?
easy- ✓ A.A retention policy with a retention period of 7 years and then delete
- B.A sensitivity label set to 'Financial' with auto-labeling
- C.A retention label that triggers a disposition review after 7 years
- D.A DLP policy that blocks sharing of financial records
Why A: Option C is correct because a retention policy with a retention period of 7 years and then deletion will meet the requirement. Option A is wrong because a retention label with a disposition review does not guarantee automatic deletion. Option B is wrong because a DLP policy prevents data loss, not retention. Option D is wrong because a sensitivity label does not manage retention.
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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