Question 1,187 of 1,411

Quick Answer

The correct answer is that the PowerShell command applies a sensitivity label to a document. This command, typically using the Set-AIPFileLabel or Set-ComplianceTag cmdlet, directly assigns a predefined sensitivity label to a file, which then enforces the protection settings—such as encryption or visual markings—that are configured within that label’s policy. On the SC-900 exam, this question tests your understanding of how sensitivity labels are applied programmatically, often appearing as a scenario where you must distinguish between assigning a label, removing one, or performing a separate action like encryption or audit log export. A common trap is assuming the command itself encrypts the file, but the label assignment is the primary action; encryption is a downstream effect if the label’s policy includes it. Remember the memory tip: “Label first, protection second”—the command’s job is to stick the label on the document, not to directly encrypt or export logs.

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. 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.

Exhibit

Refer to the exhibit.
```powershell
# PowerShell command to assign a sensitivity label
Set-AIPFileLabel -Path "C:\Reports\FinancialReport.docx" -LabelID "e6c3f7b0-1a2b-4c5d-9e8f-0a1b2c3d4e5f" -Justification "Policy update"
```

You run the PowerShell command shown in the exhibit. What is the purpose of this command?

Question 1easymultiple choice
Full question →

Exhibit

Refer to the exhibit.
```powershell
# PowerShell command to assign a sensitivity label
Set-AIPFileLabel -Path "C:\Reports\FinancialReport.docx" -LabelID "e6c3f7b0-1a2b-4c5d-9e8f-0a1b2c3d4e5f" -Justification "Policy update"
```

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

Applies a sensitivity label to a document

Option A is correct. The command assigns a sensitivity label to a document. Option B is wrong because it does not remove a label. Option C is wrong because it does not encrypt the file; labeling may include encryption but the command itself only assigns the label. Option D is wrong because it does not export audit logs.

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.

  • Applies a sensitivity label to a document

    Why this is correct

    Set-AIPFileLabel assigns a label to the specified file.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Encrypts a document using Azure Information Protection

    Why it's wrong here

    The command does not specify encryption; labeling may or may not include encryption.

  • Removes a sensitivity label from a document

    Why it's wrong here

    Removing a label would use Remove-AIPFileLabel.

  • Exports audit logs for labeled documents

    Why it's wrong here

    Exporting logs is not the purpose of this cmdlet.

Common exam traps

Common exam trap: answer the scenario, not the keyword

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.

Trap categories for this question

  • Command / output trap

    The command does not specify encryption; labeling may or may not include encryption.

Detailed technical explanation

How to think about this question

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.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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 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.

Related practice questions

Related SC-900 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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FAQ

Questions learners often ask

What does this SC-900 question test?

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: Applies a sensitivity label to a document — Option A is correct. The command assigns a sensitivity label to a document. Option B is wrong because it does not remove a label. Option C is wrong because it does not encrypt the file; labeling may include encryption but the command itself only assigns the label. Option D is wrong because it does not export audit logs.

What should I do if I get this SC-900 question wrong?

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.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 21, 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.