The answer is Data Lifecycle Management with a preservation lock. This configuration is correct because a preservation lock enforces an immutable retention policy, meaning that once locked, no administrator—including a global administrator—can modify, delete, or turn off the policy, ensuring financial records are retained for exactly 7 years and then permanently deleted. On the SC-900 exam, this scenario tests your understanding of how Microsoft Purview’s Data Lifecycle Management solutions enforce compliance through immutability, often appearing as a contrast to standard retention policies that can be altered. A common trap is confusing a preservation lock with a simple retention label or legal hold, but remember: a lock is permanent and irreversible, while other settings are not. Memory tip: think “lock it and leave it” for immutable retention.
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 multinational corporation must retain all financial records for 7 years and then permanently delete them. The compliance officer wants to ensure that even a global administrator cannot modify or delete the retention policy. Which Microsoft Purview solution and configuration should they use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Data Lifecycle Management with a preservation lock
C is correct because Data Lifecycle Management with a preservation lock allows an organization to apply a retention policy that cannot be modified, deleted, or turned off by any administrator, including a global administrator. This ensures financial records are retained for exactly 7 years and then permanently deleted, meeting the compliance officer's requirement for immutable retention.
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.
✗
eDiscovery (Standard)
Why it's wrong here
eDiscovery is used for legal hold and content search, not for automated retention and deletion.
✗
Compliance Manager
Why it's wrong here
Compliance Manager provides compliance assessments and recommendations but does not enforce retention or deletion.
✓
Data Lifecycle Management with a preservation lock
Why this is correct
Data Lifecycle Management includes retention policies for automatic retention/deletion; a preservation lock secures the policy against tampering.
Related concept
Read the scenario before looking for a memorised answer.
✗
Information Protection with sensitivity labels
Why it's wrong here
Sensitivity labels classify and protect data (e.g., encryption) but do not automatically manage retention or deletion.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse retention policies with sensitivity labels or eDiscovery, not realizing that only a preservation lock provides the immutable, administrator-proof retention enforcement required for regulatory compliance.
Detailed technical explanation
How to think about this question
A preservation lock applies a lock to a retention policy in Microsoft Purview, making it immutable so that no user, including a global administrator, can reduce the retention period or delete the policy. This is critical for regulatory requirements like SEC Rule 17a-4, which mandates that financial records be stored in a non-rewritable, non-erasable format (WORM). Once locked, the policy cannot be removed even by Microsoft support, ensuring compliance with strict data governance mandates.
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.
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 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: Data Lifecycle Management with a preservation lock — C is correct because Data Lifecycle Management with a preservation lock allows an organization to apply a retention policy that cannot be modified, deleted, or turned off by any administrator, including a global administrator. This ensures financial records are retained for exactly 7 years and then permanently deleted, meeting the compliance officer's requirement for immutable retention.
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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