The correct answer is non-repudiation. This security goal is addressed because a digital signature provides cryptographic proof of origin and integrity, binding the trader’s identity to the specific trade order in a way that cannot be feasibly forged or later denied. On the Microsoft SC-900 exam, non-repudiation is frequently tested in scenarios involving digital signatures, audit logs, or blockchain transactions, where the core idea is preventing a user from falsely claiming they did not perform an action. A common trap is confusing non-repudiation with authentication—while authentication verifies who someone is, non-repudiation proves what they did. Remember the mnemonic: “Sign it, don’t deny it”—if a digital signature is captured, the action cannot be repudiated.
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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 financial company processes stock trades. To ensure that a trader cannot later deny having submitted a specific trade order, the system captures a digital signature from the trader for each order. Which security goal is being addressed by this practice?
Why wrong: Confidentiality ensures data is not disclosed to unauthorized parties. Digital signatures do not primarily protect confidentiality.
B
Integrity
Why wrong: While digital signatures can provide integrity by detecting tampering, the primary goal in this scenario is to prevent the denial of actions.
C
Availability
Why wrong: Availability ensures systems and data are accessible when needed. Digital signatures do not address availability.
D
Non-repudiation
Non-repudiation ensures that an individual cannot deny having performed an action or sent a message. Digital signatures provide non-repudiation by binding the action to the signer.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Non-repudiation
Non-repudiation ensures that a party cannot deny having performed a specific action. By capturing a digital signature from the trader for each trade order, the system creates cryptographic proof that the trader indeed submitted that order. This prevents the trader from later claiming they did not authorize the trade, directly addressing the non-repudiation goal.
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.
✗
Confidentiality
Why it's wrong here
Confidentiality ensures data is not disclosed to unauthorized parties. Digital signatures do not primarily protect confidentiality.
✗
Integrity
Why it's wrong here
While digital signatures can provide integrity by detecting tampering, the primary goal in this scenario is to prevent the denial of actions.
✗
Availability
Why it's wrong here
Availability ensures systems and data are accessible when needed. Digital signatures do not address availability.
✓
Non-repudiation
Why this is correct
Non-repudiation ensures that an individual cannot deny having performed an action or sent a message. Digital signatures provide non-repudiation by binding the action to the signer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse integrity with non-repudiation, but integrity only ensures data hasn't been tampered with, while non-repudiation specifically provides cryptographic proof of origin and action.
Trap categories for this question
Scenario analysis trap
While digital signatures can provide integrity by detecting tampering, the primary goal in this scenario is to prevent the denial of actions.
Detailed technical explanation
How to think about this question
Digital signatures use asymmetric cryptography: the trader signs the order with their private key, and the system verifies it with the corresponding public key. This process binds the trader's identity to the order and provides non-repudiation because only the trader possesses their private key. In real-world financial systems, this is often implemented using PKI (Public Key Infrastructure) with X.509 certificates and standards like PKCS#7 for signed messages.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Non-repudiation — Non-repudiation ensures that a party cannot deny having performed a specific action. By capturing a digital signature from the trader for each trade order, the system creates cryptographic proof that the trader indeed submitted that order. This prevents the trader from later claiming they did not authorize the trade, directly addressing the non-repudiation goal.
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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Question Discussion
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