Question 1,017 of 1,411

Describe the capabilities of Microsoft compliance solutions →mediumMultiple 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.

Contoso Pharmaceuticals is implementing Microsoft Purview to meet regulatory compliance (HIPAA and GDPR). They need to: (1) automatically classify and protect patient health information (PHI) and personally identifiable information (PII) in Exchange Online, SharePoint Online, and OneDrive for Business; (2) detect and prevent unauthorized sharing of sensitive data; (3) retain audit logs for 7 years; and (4) allow users to manually apply classification labels to documents. The company has 5,000 users and uses Microsoft 365 E5 licenses. The security team wants to minimize manual effort and ensure consistent protection. What should the compliance administrator configure first?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.

A
Configure Data Loss Prevention (DLP) policies to block sharing of content containing PHI and PII.
Why wrong: DLP policies block sharing but do not classify or protect the data itself.
B
Create sensitivity labels with auto-labeling policies configured to detect PHI and PII, and publish them via label policies.
Auto-labeling provides consistent classification and protection with minimal manual effort.
C
Set up retention policies for Exchange, SharePoint, and OneDrive to retain data for 7 years.
Why wrong: Retention policies do not classify or protect data.
D
Enable auditing for all workloads and configure alert policies for unauthorized access.
Why wrong: Auditing logs events but does not classify or protect data.

Full breakdown with real-world context →

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

✓

Create sensitivity labels with auto-labeling policies configured to detect PHI and PII, and publish them via label policies.

Option B is correct because sensitivity labels with auto-labeling policies can automatically classify and protect PHI and PII across Exchange Online, SharePoint Online, and OneDrive for Business, meeting the requirement for automated classification and consistent protection. Option A is wrong because DLP policies detect and prevent unauthorized sharing but do not classify or label data. Option C is wrong because retention policies only manage data retention, not classification or protection. Option D is wrong because auditing logs activities but does not classify or protect content.

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.

✗
Configure Data Loss Prevention (DLP) policies to block sharing of content containing PHI and PII.
Why it's wrong here
DLP policies block sharing but do not classify or protect the data itself.
✓
Create sensitivity labels with auto-labeling policies configured to detect PHI and PII, and publish them via label policies.
Why this is correct
Auto-labeling provides consistent classification and protection with minimal manual effort.
Clue confirmation
The clue words "first", "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set up retention policies for Exchange, SharePoint, and OneDrive to retain data for 7 years.
Why it's wrong here
Retention policies do not classify or protect data.
✗
Enable auditing for all workloads and configure alert policies for unauthorized access.
Why it's wrong here
Auditing logs events but does not classify or protect data.

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.

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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.

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 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.

10 questions 20 questions 30 questions 50 questions Timed 30

SC-900 practice-test guide →Study guide →Browse all practice tests

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: Create sensitivity labels with auto-labeling policies configured to detect PHI and PII, and publish them via label policies. — Option B is correct because sensitivity labels with auto-labeling policies can automatically classify and protect PHI and PII across Exchange Online, SharePoint Online, and OneDrive for Business, meeting the requirement for automated classification and consistent protection. Option A is wrong because DLP policies detect and prevent unauthorized sharing but do not classify or label data. Option C is wrong because retention policies only manage data retention, not classification or protection. Option D is wrong because auditing logs activities but does not classify or protect content.

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

Are there clue words in this question I should notice?

Yes — watch for: "first", "minimum / minimize". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.

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 →

How Courseiva writes practice questions · Editorial policy

Keep practising

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.

Loading comments…

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.