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Describe the capabilities of Microsoft compliance solutions →hardMultiple ChoiceObjective-mapped

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.

Exhibit

{
  "Labels": [
    {
      "Name": "Confidential-Finance",
      "Priority": 1,
      "Settings": {
        "Encryption": {
          "ProtectionType": "UserDefined",
          "RightsDefinitions": [
            {"Users": "All", "Rights": "ViewOnly"}
          ]
        },
        "Marking": {
          "Header": {
            "Alignment": "Left",
            "Text": "CONFIDENTIAL",
            "FontColor": "Red",
            "FontSize": 12
          }
        },
        "AutoLabeling": {
          "Rules": [
            {
              "Condition": {"SensitiveInfoType": "Credit Card Number"},
              "Behavior": "Apply"
            }
          ]
        }
      },
      "SubLabels": [
        {
          "Name": "Finance-Europe",
          "Priority": 2,
          "Settings": {
            "Encryption": {
              "ProtectionType": "Template",
              "TemplateId": "europe-finance-template"
            },
            "Marking": {
              "Watermark": {
                "Text": "EUROPE CONFIDENTIAL",
                "Layout": "Diagonal",
                "FontSize": 24
              }
            }
          }
        }
      ]
    }
  ]
}

Refer to the exhibit. A sensitivity label is configured as shown. A user applies the parent label to a document containing credit card numbers. What is the expected behavior?

Exhibit

{
  "Labels": [
    {
      "Name": "Confidential-Finance",
      "Priority": 1,
      "Settings": {
        "Encryption": {
          "ProtectionType": "UserDefined",
          "RightsDefinitions": [
            {"Users": "All", "Rights": "ViewOnly"}
          ]
        },
        "Marking": {
          "Header": {
            "Alignment": "Left",
            "Text": "CONFIDENTIAL",
            "FontColor": "Red",
            "FontSize": 12
          }
        },
        "AutoLabeling": {
          "Rules": [
            {
              "Condition": {"SensitiveInfoType": "Credit Card Number"},
              "Behavior": "Apply"
            }
          ]
        }
      },
      "SubLabels": [
        {
          "Name": "Finance-Europe",
          "Priority": 2,
          "Settings": {
            "Encryption": {
              "ProtectionType": "Template",
              "TemplateId": "europe-finance-template"
            },
            "Marking": {
              "Watermark": {
                "Text": "EUROPE CONFIDENTIAL",
                "Layout": "Diagonal",
                "FontSize": 24
              }
            }
          }
        }
      ]
    }
  ]
}

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

✓

The document gets the parent label's encryption (ViewOnly) and header, but no watermark

Option C is correct because when a user manually applies a parent sensitivity label that has sublabels, only the parent label's settings (encryption and header) are applied. The sublabel's watermark is not applied because sublabels are separate entities that must be explicitly selected; they are not automatically inherited or triggered by applying the parent label. The encryption (ViewOnly) and header come from the parent label's configuration, while the watermark belongs to the sublabel and is not applied.

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.

  • ✗

    The document gets the parent label's header and the sublabel's encryption and watermark

    Why it's wrong here

    Sublabels are not automatically applied; user would need to select the sublabel.

  • ✗

    The document gets no protection because credit card numbers are only detected by auto-labeling

    Why it's wrong here

    Manual application still applies the label's encryption and marking.

  • ✓

    The document gets the parent label's encryption (ViewOnly) and header, but no watermark

    Why this is correct

    Manual application applies parent label settings; auto-labeling is not invoked. Sublabel is not automatically applied.

    Related concept

    Read the scenario before looking for a memorised answer.

  • ✗

    The document gets the parent label's encryption and header, and auto-labeling applies the sublabel

    Why it's wrong here

    Auto-labeling is configured on parent but does not apply sublabels automatically.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates assume applying a parent label automatically cascades its settings to or includes its sublabels, but in reality, sublabels are separate labels that must be explicitly chosen, and no inheritance or automatic application occurs between parent and sublabels.

Detailed technical explanation

How to think about this question

In Microsoft Purview Information Protection, sensitivity labels can be organized in a hierarchy with parent and sublabels, but sublabels are independent labels that inherit no settings from the parent. When a user applies a parent label, only the parent's own protection settings (encryption, header, footer, watermark) are applied; sublabels must be selected individually. Auto-labeling policies can be configured to apply labels based on sensitive information types (like credit card numbers), but they apply the specific label defined in the policy, not sublabels of a manually applied parent label.

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.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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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: The document gets the parent label's encryption (ViewOnly) and header, but no watermark — Option C is correct because when a user manually applies a parent sensitivity label that has sublabels, only the parent label's settings (encryption and header) are applied. The sublabel's watermark is not applied because sublabels are separate entities that must be explicitly selected; they are not automatically inherited or triggered by applying the parent label. The encryption (ViewOnly) and header come from the parent label's configuration, while the watermark belongs to the sublabel and is not applied.

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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Last reviewed: Jul 4, 2026

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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.