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SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions

Which THREE capabilities are part of Microsoft Purview Data Lifecycle Management?

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

Retention labels

Data Lifecycle Management in Microsoft Purview focuses on managing data through its lifecycle, including retention, deletion, and records management. The key capabilities are retention policies (C), retention labels (A), and records management (E). Data Loss Prevention (B) is a separate capability for preventing data leaks, not lifecycle management. eDiscovery (D) is about discovering and exporting data for legal purposes, not lifecycle management. Therefore, the correct options are A, C, and E.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Retention labels

    Why this is correct

    Retention labels in Microsoft Purview Data Lifecycle Management enable organizations to classify content and apply specific retention settings directly to individual items, such as emails or documents. These labels can be applied manually by users, automatically based on conditions, or through event-based triggers, ensuring that data is retained or deleted according to regulatory or business requirements throughout its lifecycle. They also facilitate the declaration of records, making content immutable for compliance.

  • Data Loss Prevention policies

    Why it's wrong here

    Data Loss Prevention (DLP) policies are designed to identify, monitor, and protect sensitive information across various locations within Microsoft 365, preventing its unauthorized sharing or transfer outside the organization. While crucial for security and compliance, DLP focuses on preventing data exfiltration or misuse rather than governing the long-term retention or deletion of data as part of its lifecycle. Therefore, DLP is a distinct capability from Data Lifecycle Management, which manages data from creation to disposition.

  • Retention policies

    Why this is correct

    Retention policies within Microsoft Purview Data Lifecycle Management are used to apply broad retention and deletion settings to content at a container level, such as entire SharePoint sites, Exchange mailboxes, or Teams channels. These policies ensure that data is retained for a specified period to meet compliance obligations and then automatically deleted when no longer needed, reducing data sprawl and associated risks. They provide a foundational layer for managing data across multiple locations without requiring individual item classification.

  • eDiscovery

    Why it's wrong here

    eDiscovery capabilities in Microsoft Purview are specifically engineered to identify, preserve, collect, process, review, and analyze electronically stored information (ESI) for legal or investigative purposes. This functionality is primarily reactive, responding to legal holds or investigations, rather than proactively managing the retention and disposition of data throughout its routine operational lifecycle. While eDiscovery relies on data being retained, it is a distinct legal process tool, not a core component of data lifecycle management itself.

  • Records management

    Why this is correct

    Records management in Microsoft Purview Data Lifecycle Management provides specialized controls for managing high-value, business-critical, or regulatory records, ensuring their immutability and auditable disposition. This capability allows organizations to declare content as a record, preventing its modification or deletion, and manage its lifecycle according to strict regulatory schedules, including disposition reviews. It is essential for meeting stringent compliance requirements by providing a defensible process for managing official records.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.