SC-900 Sensitivity label Practice Question
Exhibit
Refer to the exhibit. ```powershell # PowerShell command to assign a sensitivity label Set-AIPFileLabel -Path "C:\Reports\FinancialReport.docx" -LabelID "e6c3f7b0-1a2b-4c5d-9e8f-0a1b2c3d4e5f" -Justification "Policy update" ```
You run the PowerShell command shown in the exhibit. What is the purpose of this command?
⚠ Common exam trap
The trap is assuming the command directly encrypts the document, when in fact it applies a label that may include encryption as a side effect.
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
✓
Applies a sensitivity label to a document
The PowerShell command shown in the exhibit is used to apply a sensitivity label to a document. Sensitivity labels in Microsoft 365 are applied using cmdlets like Set-AIPFileLabel or Set-Label, which tag the file with the specified label for classification and protection. This action does not encrypt the document by itself; encryption is a potential outcome of the label's protection settings, but the command's primary purpose is labeling.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Applies a sensitivity label to a document
Why this is correct
The cmdlet applies a sensitivity label to the specified document, tagging it with the organisation's classification so encryption and protection policies follow the file. It does not create, remove or list labels, only assigns one.
- ✗
Encrypts a document using Azure Information Protection
Why it's wrong here
The command retrieves label details and does not apply encryption; Azure Information Protection encryption is performed through protection templates or the labelling action itself. It is tempting because sensitivity labels can trigger encryption, but that occurs when a label is applied, not when label information is queried.
- ✗
Removes a sensitivity label from a document
Why it's wrong here
The command queries label metadata; it does not strip a sensitivity label from a document, which requires a separate label-removal operation. It is tempting because both concern sensitivity labels, but removal would be the correct purpose only when the cmdlet explicitly deletes or clears the applied label.
- ✗
Exports audit logs for labeled documents
Why it's wrong here
The command returns or lists label information rather than exporting audit records, so it does not produce an audit log of labelled documents. It is tempting because sensitivity labels and auditing both relate to information protection, but exporting audit data requires the unified audit log search tooling instead.
Go deeper
Related to this question
Learn chapter
Information Protection and DLP
Key term
Labels
Labels are descriptive text or tags attached to IT resources to organize, identify, and manage them based on attributes like purpose, environment, or owner.
Key term
Sensitivity label
A sensitivity label is a metadata tag applied to digital content that classifies the content's level of confidentiality and governs how it can be shared, protected, and accessed.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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.