- A
Data Lifecycle Management and Data Loss Prevention
Why wrong: Data Lifecycle Management handles retention and deletion, not encryption.
- B
Retention policies and Records Management
Why wrong: These manage retention and disposition, not encryption or forwarding.
- C
Information Barriers and Communication Compliance
Why wrong: Information Barriers restrict communication between groups; Communication Compliance monitors communications.
- D
eDiscovery (Premium) and Audit (Standard)
Why wrong: These are for discovery and auditing, not protection.
- E
Sensitivity labels with encryption and Data Loss Prevention
Sensitivity labels encrypt the document; DLP can block forwarding.
Question 1,095 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. 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.
Your organization must ensure that financial reports are protected with encryption and cannot be forwarded. Which two Microsoft Purview features should you combine?
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 encryption and Data Loss Prevention
Sensitivity labels with encryption allow you to apply persistent encryption to financial reports, ensuring they remain protected even when shared. Data Loss Prevention (DLP) policies can then block or warn users from forwarding these encrypted reports via email or other channels, providing a combined solution for encryption and forwarding prevention.
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 Lifecycle Management and Data Loss Prevention
Why it's wrong here
Data Lifecycle Management handles retention and deletion, not encryption.
- ✗
Retention policies and Records Management
Why it's wrong here
These manage retention and disposition, not encryption or forwarding.
- ✗
Information Barriers and Communication Compliance
Why it's wrong here
Information Barriers restrict communication between groups; Communication Compliance monitors communications.
- ✗
eDiscovery (Premium) and Audit (Standard)
Why it's wrong here
These are for discovery and auditing, not protection.
- ✓
Sensitivity labels with encryption and Data Loss Prevention
Why this is correct
Sensitivity labels encrypt the document; DLP can block forwarding.
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 think DLP alone can prevent forwarding, but without encryption (via sensitivity labels), the content remains unprotected if forwarded outside the organization, so both features must be combined.
Detailed technical explanation
How to think about this question
Sensitivity labels use Azure Information Protection (AIP) to apply AES-256 encryption directly to files, with rights management templates that can restrict actions like forwarding. DLP policies integrate with Microsoft 365 workloads (Exchange, SharePoint, Teams) to inspect content and enforce actions such as blocking forwarding based on sensitivity label metadata, using conditions like 'Sensitivity is Confidential' combined with 'Forwarding' action.
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.
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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: Sensitivity labels with encryption and Data Loss Prevention — Sensitivity labels with encryption allow you to apply persistent encryption to financial reports, ensuring they remain protected even when shared. Data Loss Prevention (DLP) policies can then block or warn users from forwarding these encrypted reports via email or other channels, providing a combined solution for encryption and forwarding prevention.
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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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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