- A
Data loss prevention policies
Why wrong: DLP policies restrict sharing, not storage location.
- B
Sensitivity labels with encryption
Why wrong: Sensitivity labels do not control where data is stored.
- C
Azure Information Protection unified labeling
Why wrong: This solution is for classification and protection, not residency.
- D
Microsoft Purview Multi-Geo
Multi-Geo provides data residency at the tenant level for core Microsoft 365 services.
Question 786 of 1,411
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. 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.
A multinational corporation needs to enforce data residency requirements by storing data in specific geographic locations. They are using Microsoft Purview for data governance. Which capability should they leverage to meet this requirement?
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
✓
Microsoft Purview Multi-Geo
Microsoft Purview Multi-Geo is the correct capability because it enables organizations to store data at rest in specific geographic locations to meet data residency requirements. This feature works by provisioning data in chosen regions while maintaining a single Microsoft 365 tenant, allowing the multinational corporation to comply with local regulations without needing separate tenants.
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.
- ✗
Data loss prevention policies
Why it's wrong here
DLP policies restrict sharing, not storage location.
- ✗
Sensitivity labels with encryption
Why it's wrong here
Sensitivity labels do not control where data is stored.
- ✗
Azure Information Protection unified labeling
Why it's wrong here
This solution is for classification and protection, not residency.
- ✓
Microsoft Purview Multi-Geo
Why this is correct
Multi-Geo provides data residency at the tenant level for core Microsoft 365 services.
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 data residency with data protection, mistakenly choosing sensitivity labels or DLP policies because they think encryption or preventing data loss automatically ensures geographic storage compliance.
Detailed technical explanation
How to think about this question
Microsoft Purview Multi-Geo works by allowing administrators to configure a preferred data location for each user's Exchange Online mailbox, SharePoint Online site, and OneDrive for Business storage. This is done through the Microsoft 365 admin center or PowerShell, where you assign a geo location to a user or site, and the system automatically provisions the data in the corresponding Azure region. A subtle behavior is that Multi-Geo does not affect data in transit or processing; it only controls data at rest, and some services like Teams chat data may still be stored in the central location unless additional configurations are applied.
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.
- →
Describe the capabilities of Microsoft compliance solutions — study guide chapter
Learn the concepts, then practise the questions
- →
Describe the capabilities of Microsoft compliance solutions practice questions
Targeted practice on this topic area only
- →
All SC-900 questions
1,411 questions across all exam domains
- →
Microsoft Security, Compliance, and Identity Fundamentals SC-900 study guide
Full concept coverage aligned to exam objectives
- →
SC-900 practice test guide
How to use practice tests most effectively before exam day
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.
Describe the capabilities of Microsoft Entra practice questions
Practise SC-900 questions linked to Describe the capabilities of Microsoft Entra.
Describe the capabilities of Microsoft security solutions practice questions
Practise SC-900 questions linked to Describe the capabilities of Microsoft security solutions.
Describe the capabilities of Microsoft compliance solutions practice questions
Practise SC-900 questions linked to Describe the capabilities of Microsoft compliance solutions.
Describe the concepts of security, compliance, and identity practice questions
Practise SC-900 questions linked to Describe the concepts of security, compliance, and identity.
SC-900 fundamentals practice questions
Practise SC-900 questions linked to SC-900 fundamentals.
SC-900 scenario practice questions
Practise SC-900 questions linked to SC-900 scenario.
SC-900 troubleshooting practice questions
Practise SC-900 questions linked to SC-900 troubleshooting.
Practice this exam
Start a free SC-900 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: Microsoft Purview Multi-Geo — Microsoft Purview Multi-Geo is the correct capability because it enables organizations to store data at rest in specific geographic locations to meet data residency requirements. This feature works by provisioning data in chosen regions while maintaining a single Microsoft 365 tenant, allowing the multinational corporation to comply with local regulations without needing separate tenants.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Keep practising
More SC-900 practice questions
- An organization uses Microsoft Purview Compliance Manager to track compliance with regulations. The compliance officer n…
- A company uses Microsoft Teams and wants to ensure that messages containing offensive language are flagged for review. W…
- A financial services firm uses Microsoft Purview Information Barriers to prevent traders from communicating with investm…
- A company uses a cloud-based SaaS (Software as a Service) application for customer relationship management. According to…
- A company has a document management system. The security policy requires that a user in the Sales department can only vi…
- A company implements a security measure to ensure that only authorized employees can view sensitive customer records. Wh…
Last reviewed: Jul 4, 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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.