- A
Sensitivity labels with auto-classification
Sensitivity labels can auto-classify sensitive data and apply encryption.
- B
eDiscovery
Why wrong: eDiscovery is for search and export, not classification.
- C
Microsoft Purview Audit
Why wrong: Audit tracks activities, does not encrypt.
- D
Data Loss Prevention (DLP) policies
Why wrong: DLP prevents sharing but does not encrypt at rest.
Question 482 of 1,411
Microsoft Purview Sensitivity Labels: Auto-Classification and Encryption for SharePoint
This SC-900 practice question tests your understanding of describe the capabilities of microsoft security 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 company wants to automatically classify documents containing credit card numbers and apply encryption at rest in SharePoint Online. Which Microsoft Purview feature should be used?
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
✓
Sensitivity labels with auto-classification
Sensitivity labels with auto-classification can automatically detect sensitive data types such as credit card numbers using built-in or custom sensitive info types, and then apply a label that enforces encryption at rest in SharePoint Online. This meets the requirement of both automatic classification and encryption enforcement without manual user intervention.
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.
- ✓
Sensitivity labels with auto-classification
Why this is correct
Sensitivity labels can auto-classify sensitive data and apply encryption.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
eDiscovery
Why it's wrong here
eDiscovery is for search and export, not classification.
- ✗
Microsoft Purview Audit
Why it's wrong here
Audit tracks activities, does not encrypt.
- ✗
Data Loss Prevention (DLP) policies
Why it's wrong here
DLP prevents sharing but does not encrypt at rest.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP policies with sensitivity labels, assuming DLP can enforce encryption, but DLP only blocks or alerts on policy violations and does not apply encryption at rest.
Detailed technical explanation
How to think about this question
Sensitivity labels use Microsoft Purview Information Protection to integrate with Azure Information Protection (AIP) for encryption via Azure Rights Management (Azure RMS). When auto-classification is configured, the label can be applied based on sensitive info types (e.g., credit card number regex matching) or trainable classifiers, and the encryption action is enforced at the file level using AES-256 with a customer-managed or Microsoft-managed key. In SharePoint Online, labeled documents are encrypted both in transit and at rest, and the encryption travels with the file if it is downloaded or shared.
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
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the capabilities of Microsoft security solutions — This question tests Describe the capabilities of Microsoft security solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Sensitivity labels with auto-classification — Sensitivity labels with auto-classification can automatically detect sensitive data types such as credit card numbers using built-in or custom sensitive info types, and then apply a label that enforces encryption at rest in SharePoint Online. This meets the requirement of both automatic classification and encryption enforcement without manual user intervention.
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 →
Same concept, more angles
1 more ways this is tested on SC-900
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company wants to classify and label documents in SharePoint automatically based on sensitive content like social security numbers. Which Microsoft Purview solution should they use?
easy- A.eDiscovery
- ✓ B.Auto-labeling policy
- C.Audit log
- D.Data loss prevention policy
Why B: Auto-labeling policies in Microsoft Purview can automatically detect sensitive content such as social security numbers in SharePoint documents and apply the appropriate sensitivity label. This enables consistent classification and protection without manual user intervention, directly meeting the company's requirement.
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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.
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