The correct answer is that the document will be encrypted with AES256, watermarked with 'CONFIDENTIAL', and sharing will be blocked. This is because the sensitivity label configuration includes three distinct actions: encryption using the AES256 algorithm, a visual watermark applied to the document, and a protection setting that blocks external sharing. On the SC-900 exam, this scenario tests your ability to interpret a sensitivity label’s action list rather than just its name or purpose—a common trap is confusing a label that only marks content with one that also enforces encryption and sharing restrictions. Remember that Microsoft Purview sensitivity labels can combine encryption, visual markings like watermarks, and access controls independently; the exhibit explicitly shows all three enabled. For a quick memory tip, think of the acronym EWB: Encryption, Watermark, Block sharing—if you see all three in the label’s actions, that is exactly what will happen when applied.
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. 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.
You are reviewing a Microsoft Purview sensitivity label configuration. Based on the exhibit, what will happen when this label is applied to a document?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The document will be encrypted with AES256, watermarked with 'CONFIDENTIAL', and sharing will be blocked.
Option A is correct because the label includes three actions: encrypt with AES256, apply a watermark, and block sharing. Option B is wrong because there is no expiration. Option C is wrong because it blocks sharing, not just warning. Option D is wrong because it includes encryption and watermark, not just marking.
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.
✗
The document will be watermarked only.
Why it's wrong here
The label includes encryption and blocking in addition to watermarking.
✗
The document will be encrypted and will expire after a set period.
Why it's wrong here
No expiration action is defined in the label.
✓
The document will be encrypted with AES256, watermarked with 'CONFIDENTIAL', and sharing will be blocked.
Why this is correct
All three actions are specified in the label configuration.
Related concept
Read the scenario before looking for a memorised answer.
✗
The document will display a warning before sharing.
Why it's wrong here
The label blocks sharing entirely, not just a warning.
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 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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.
Describe the capabilities of Microsoft security solutions — This question tests Describe the capabilities of Microsoft security solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The document will be encrypted with AES256, watermarked with 'CONFIDENTIAL', and sharing will be blocked. — Option A is correct because the label includes three actions: encrypt with AES256, apply a watermark, and block sharing. Option B is wrong because there is no expiration. Option C is wrong because it blocks sharing, not just warning. Option D is wrong because it includes encryption and watermark, not just marking.
What should I do if I get this SC-900 question wrong?
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.
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 →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization wants to protect sensitive documents from being copied to unauthorized cloud services. Which Microsoft Purview capability should you use?
easy
A.Audit log
✓ B.Data Loss Prevention (DLP) policy
C.Retention policy
D.Sensitivity label
Why B: Option B is correct because DLP policies can detect and prevent sharing of sensitive data to unauthorized services. Option A is incorrect because audit logs only record activity, not block. Option C is incorrect because sensitivity labels classify data but do not block sharing. Option D is incorrect because records management focuses on retention.
Variation 2. Which TWO of the following are capabilities of Microsoft Purview Information Protection? (Choose two.)
medium
✓ A.Classify and label sensitive data
B.Block external sharing of files
C.Detect malware in email attachments
✓ D.Apply encryption based on sensitivity labels
E.Monitor user activities in real-time
Why A: Microsoft Purview Information Protection allows classification and labeling, and can apply encryption. Activity logging is part of Audit, and DLP is a separate solution.
Last reviewed: Jun 21, 2026
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