- A
Create a DLP policy that detects the phrase and automatically applies the label, then blocks external sharing.
Why wrong: DLP policies do not automatically apply sensitivity labels; that is done by auto-labeling policies.
- B
Create an auto-labeling policy for the label, and create a DLP policy that detects the label and blocks external sharing with a policy tip.
Auto-labeling automatically applies the label, and DLP blocks sharing and provides policy tip.
- C
Create an auto-labeling policy for the label, and create a mail flow rule in Exchange to block external emails with that label.
Why wrong: Mail flow rules are not as integrated; DLP policy is the recommended way with policy tips.
- D
Create a manual labeling policy and train users to apply the label, then create a DLP policy.
Why wrong: Manual labeling is not automatic as required.
SC-900 Practice Question: Describe the capabilities of Microsoft security solutions
This SC-900 practice question tests your understanding of describe the capabilities of microsoft security 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.
You are responsible for Microsoft Purview Information Protection at a law firm that handles highly confidential client documents. The firm uses Microsoft 365 E5. You need to ensure that any document containing the phrase 'Attorney-Client Privileged' is automatically labeled with a 'Highly Confidential' sensitivity label and encrypted. Additionally, if a user attempts to send such a document via email outside the organization, the action should be blocked and the user should be prompted with a policy tip. You have already created the sensitivity label with encryption settings. What should you do next?
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 an auto-labeling policy for the label, and create a DLP policy that detects the label and blocks external sharing with a policy tip.
Correct: B. Create an auto-labeling policy for the label, and a DLP policy that detects the label and blocks external sharing with policy tip. Option A: Missing DLP policy. Option C: Manual labeling is not automatic. Option D: DLP policy alone cannot auto-label.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a DLP policy that detects the phrase and automatically applies the label, then blocks external sharing.
Why it's wrong here
DLP policies do not automatically apply sensitivity labels; that is done by auto-labeling policies.
- ✓
Create an auto-labeling policy for the label, and create a DLP policy that detects the label and blocks external sharing with a policy tip.
Why this is correct
Auto-labeling automatically applies the label, and DLP blocks sharing and provides policy tip.
Related concept
Authentication checks who the user is.
- ✗
Create an auto-labeling policy for the label, and create a mail flow rule in Exchange to block external emails with that label.
Why it's wrong here
Mail flow rules are not as integrated; DLP policy is the recommended way with policy tips.
- ✗
Create a manual labeling policy and train users to apply the label, then create a DLP policy.
Why it's wrong here
Manual labeling is not automatic as required.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
- Authentication checks who the user is.
- Authorization controls what the user is allowed to do after login.
- Privilege levels affect access to EXEC and configuration commands.
- AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
- Do not assume successful login means full administrative access.
- Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
- Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
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. Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access. 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.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-900 questions on access control and AAA configuration.
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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 — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Create an auto-labeling policy for the label, and create a DLP policy that detects the label and blocks external sharing with a policy tip. — Correct: B. Create an auto-labeling policy for the label, and a DLP policy that detects the label and blocks external sharing with policy tip. Option A: Missing DLP policy. Option C: Manual labeling is not automatic. Option D: DLP policy alone cannot auto-label.
What should I do if I get this SC-900 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-900 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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Last reviewed: Jun 21, 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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