Question 490 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. 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.

Exhibit

{
  "LabelName": "Confidential-Finance",
  "Settings": {
    "Encryption": {
      "Enabled": true,
      "ProtectionType": "UserDefined"
    },
    "Marking": {
      "Header": "CONFIDENTIAL",
      "Footer": "Confidential - Finance"
    }
  }
}

Refer to the exhibit. A sensitivity label is configured as shown. Which statement about the label's behavior is accurate?

Exhibit

{
  "LabelName": "Confidential-Finance",
  "Settings": {
    "Encryption": {
      "Enabled": true,
      "ProtectionType": "UserDefined"
    },
    "Marking": {
      "Header": "CONFIDENTIAL",
      "Footer": "Confidential - Finance"
    }
  }
}

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

When applied, users can choose who can access the document and what permissions they have.

Option A is correct because the exhibit shows a sensitivity label configured with 'Let users assign permissions' under 'User-defined permissions' in Azure Information Protection. This setting allows end users to define custom permissions (e.g., who can read, edit, or forward) when applying the label, rather than using a fixed template or automatic encryption.

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.

  • When applied, users can choose who can access the document and what permissions they have.

    Why this is correct

    UserDefined means users set permissions.

    Related concept

    Read the scenario before looking for a memorised answer.

  • The label disables encryption and only adds a header and footer.

    Why it's wrong here

    Encryption is enabled.

  • The label automatically encrypts the document with a predefined template.

    Why it's wrong here

    ProtectionType is UserDefined, not predefined.

  • The label does not apply any protection; it only adds visual markings.

    Why it's wrong here

    Encryption is enabled and markings are applied.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often confuse 'user-defined permissions' with 'no encryption' or 'automatic encryption with a template,' failing to recognize that the exhibit's configuration explicitly enables user-controlled encryption rather than disabling it or using a fixed template.

Detailed technical explanation

How to think about this question

Under the hood, the 'Let users assign permissions' option uses Azure Rights Management (Azure RMS) to apply ad-hoc encryption, where the label triggers a policy that prompts the user to select specific users or groups and choose from predefined permission levels (e.g., Reviewer, Co-Author). This differs from 'Automatically apply encryption' which uses a fixed Rights Management template. In real-world scenarios, this is useful for ad-hoc collaboration where the document owner needs granular control over access without IT predefining a template.

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 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 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: When applied, users can choose who can access the document and what permissions they have. — Option A is correct because the exhibit shows a sensitivity label configured with 'Let users assign permissions' under 'User-defined permissions' in Azure Information Protection. This setting allows end users to define custom permissions (e.g., who can read, edit, or forward) when applying the label, rather than using a fixed template or automatic encryption.

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

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