Microsoft MS-102 Microsoft 365 Administrator Exam Dumps and Practice Test Questions Set 2 Q16-30

Microsoft MS-102 Microsoft 365 Administrator Exam Dumps and Practice Test Questions Set 2 Q16-30

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Question 16

A company wants to enforce that all users must register at least two authentication methods for self-service password reset. Which feature should the administrator configure?

A) Azure AD Multi-Factor Authentication Registration Policy
B) Microsoft Intune Compliance Policies
C) Exchange Online Mailbox Policies
D) Microsoft Defender for Endpoint

Answer: A) Azure AD Multi-Factor Authentication Registration Policy

Explanation:

Azure AD Multi-Factor Authentication (MFA) Registration Policies allow administrators to enforce that users register authentication methods required for self-service password reset (SSPR). This ensures that users can verify their identities through multiple methods, such as phone numbers, email addresses, or authenticator apps, before performing password resets. Requiring at least two authentication methods significantly strengthens account security and reduces the likelihood of account compromise.

Microsoft Intune Compliance Policies focus on ensuring that devices meet organizational security requirements, such as encryption, PIN enforcement, and OS version. While these policies are crucial for device security and can interact with Conditional Access, they do not control MFA registration for self-service password reset. Intune helps enforce device posture, but user identity verification during SSPR is independent of device compliance policies.

Exchange Online Mailbox Policies govern mailbox access, retention, mobile device settings, and certain security configurations for email. They do not manage user authentication methods or enforce registration for SSPR. While mailbox policies may complement security, they do not directly influence the MFA or password reset processes.

Microsoft Defender for Endpoint provides device-level protection, including threat detection, malware mitigation, and endpoint analytics. Although it strengthens the security posture of endpoints, it does not enforce multi-factor registration or control self-service password reset processes. Defender is reactive in threat detection but does not manage authentication registration.

By using Azure AD MFA Registration Policy, administrators can require that users set up multiple authentication methods during registration. This ensures that self-service password reset functions properly and securely. Enforcing multiple methods increases resilience against identity theft and account compromise. The policy is flexible and allows administrators to determine which methods are mandatory or optional, aligning with organizational security standards. With this configuration, users cannot bypass registration, and the organization ensures consistent implementation of security best practices across all Microsoft 365 accounts. Additionally, the registration process can be monitored, providing reporting and insights into compliance status for administrators. Azure AD integrates with SSPR, making this configuration essential for organizations aiming to reduce helpdesk calls while improving identity security.

Question 17

An organization wants to provide secure external collaboration through Microsoft Teams but ensure that guests cannot share files outside the tenant. Which feature should the administrator configure?

A) Teams Guest Access Settings with SharePoint and OneDrive Controls
B) Azure AD Conditional Access
C) Microsoft 365 Retention Policies
D) Microsoft Defender for Office 365 Anti-Phishing

Answer: A) Teams Guest Access Settings with SharePoint and OneDrive Controls

Explanation:

Microsoft Teams integrates deeply with SharePoint Online and OneDrive for Business for file storage and sharing. Teams Guest Access Settings allow administrators to control what external guests can do, such as sending messages, making calls, or accessing files. By combining these settings with SharePoint and OneDrive access controls, administrators can prevent guests from downloading or sharing files outside the organization. Permissions can be set at the site, library, or document level, giving granular control over external collaboration. This ensures that guests can participate in Teams discussions or collaborate on content internally without exposing files to unauthorized external locations.

Azure AD Conditional Access manages access to applications and services based on user, device, and location conditions. While Conditional Access can enforce MFA or device compliance for guests, it does not provide granular control over what guests can do with files inside Teams or SharePoint. Conditional Access primarily controls whether users can access the service, not what they can do after access.

Microsoft 365 Retention Policies help manage the lifecycle of content by automatically retaining or deleting data based on configured rules. Retention Policies are essential for compliance and data governance, but they do not prevent guests from sharing files externally. Retention focuses on preservation and deletion, not access restrictions.

Microsoft Defender for Office 365 Anti-Phishing protects users from malicious links, attachments, and phishing attacks. While it secures email communications and improves threat detection, it does not govern file access or sharing permissions in Teams or SharePoint.

By configuring Teams Guest Access with SharePoint and OneDrive controls, the organization can ensure secure collaboration without compromising sensitive information. This approach allows external users to work with Teams features while maintaining control over file access, enforcing organizational policies, and reducing the risk of accidental or intentional data leakage. Administrators can also monitor and audit guest activities, ensuring compliance and providing visibility into external collaboration patterns. This integrated approach balances collaboration needs with robust security measures.

Question 18

A company wants to prevent users from forwarding sensitive emails outside the organization. Which Microsoft 365 feature is best suited for this scenario?

A) Exchange Online Data Loss Prevention (DLP) Policies
B) Microsoft Purview Retention Labels
C) Microsoft Intune Device Compliance
D) Azure AD Identity Protection

Answer: A) Exchange Online Data Loss Prevention (DLP) Policies

Explanation:

Exchange Online Data Loss Prevention (DLP) policies are designed to detect, monitor, and prevent the sharing of sensitive information via email. Administrators can configure rules that automatically block or restrict the forwarding of emails containing confidential information, such as credit card numbers, financial data, or proprietary content. DLP policies can generate notifications, apply encryption, or warn users when they attempt to forward sensitive emails, ensuring that corporate data remains protected. This solution integrates seamlessly with Exchange Online and can also extend to SharePoint Online and OneDrive, providing consistent protection across Microsoft 365 services.

Microsoft Purview Retention Labels classify and preserve content to meet compliance requirements. While retention labels ensure that emails and documents are retained or deleted based on policies, they do not control forwarding or prevent accidental data exposure. Retention focuses on lifecycle management rather than real-time access or sharing restrictions.

Microsoft Intune Device Compliance ensures that devices meet security standards, such as encryption and OS version requirements. While compliant devices may be allowed access through Conditional Access, Intune does not provide functionality to block email forwarding or manage sensitive content in messages. Device compliance and content protection are related but distinct areas.

Azure AD Identity Protection detects compromised accounts, risky sign-ins, and unusual authentication patterns. Although it enhances identity security and can trigger risk-based conditional access policies, it does not monitor or prevent the forwarding of sensitive emails. Identity Protection is focused on account risk, not content security within email.

DLP policies provide a proactive and automated approach to preventing sensitive data leakage. Administrators can define sensitive data types, specify actions when content is detected, and enforce corporate policies. By applying DLP rules, organizations can protect confidential information from leaving the organization, educate users through policy tips, and generate reports for auditing purposes. This feature ensures compliance with regulatory requirements, reduces the risk of data breaches, and enables secure collaboration within the organization. DLP provides visibility into email and document activity, helping organizations identify trends or areas requiring additional training or policy adjustments. The flexibility and integration of DLP policies make it the most suitable feature for controlling email forwarding and protecting sensitive organizational information.

Question 19

An organization wants to allow users to share documents externally but only with authenticated users from specific partner domains. Which feature should the administrator configure?

A) SharePoint and OneDrive External Sharing Settings with Allowed Domains
B) Microsoft 365 Retention Labels
C) Azure AD Conditional Access
D) Microsoft Defender for Office 365 Safe Attachments

Answer: A) SharePoint and OneDrive External Sharing Settings with Allowed Domains

Explanation:

SharePoint and OneDrive External Sharing Settings with Allowed Domains are designed to control external access to organizational content. By specifying allowed domains, administrators ensure that external users can only access documents if they belong to approved organizations. This approach enhances collaboration with trusted partners while preventing unauthorized sharing, which is critical in maintaining information security and compliance. External users are required to authenticate using their credentials from the approved domain, which ensures accountability, traceability, and auditability. Administrators can configure settings at the tenant, site, library, or even file level to control access granularly, allowing users to share content securely while still enabling productive collaboration across organizational boundaries. These configurations integrate seamlessly with Microsoft Teams, as Teams stores files in SharePoint, ensuring consistent access policies across collaboration platforms. In addition, administrators can monitor shared content and revoke access when necessary, providing ongoing oversight to prevent accidental or malicious exposure.

Microsoft 365 Retention Labels focus on the lifecycle management of content, ensuring that items are retained for regulatory or compliance purposes or automatically deleted after a certain period. Retention labels can be applied automatically or manually, and they help organizations manage compliance obligations, reduce storage costs, and maintain records. However, retention labels do not control who can access shared content. They provide no capability to restrict external sharing to specific domains or authenticated users. While retention labels are essential for compliance, they do not address the security requirements of controlled external sharing.

Azure AD Conditional Access enables organizations to enforce access policies based on user identity, device compliance, or location. Conditional Access can block or allow access to Microsoft 365 apps depending on device posture or user risk level, but it does not control which external domains can access SharePoint or OneDrive content. While Conditional Access ensures that only compliant or secure devices can connect, it cannot restrict external collaboration by domain, making it unsuitable for this scenario. Conditional Access provides a layer of security, but domain-based external sharing requires configuration in SharePoint and OneDrive.

Microsoft Defender for Office 365 Safe Attachments scans files for malware and malicious content to protect users from potential security threats. This service ensures that attachments in emails or documents are safe before delivery. Although Safe Attachments improves security by preventing the spread of malicious files, it does not manage access permissions or restrict sharing based on external domains. Safe Attachments protects the organization from threats but cannot enforce collaboration policies with specific partners.

Configuring SharePoint and OneDrive External Sharing Settings with Allowed Domains is the most appropriate approach. It balances security and productivity by allowing collaboration with authenticated users from trusted organizations while preventing unauthorized access. This approach ensures that sensitive data remains protected while enabling business operations. Administrators can monitor access, generate audit reports, and adjust policies dynamically as partnerships evolve. The integration with Teams, OneDrive, and SharePoint provides consistency across platforms. Overall, using external sharing settings with allowed domains provides precise control over who can access content, supports regulatory compliance, and reduces the risk of data leakage while maintaining collaboration efficiency.

Question 20

A company wants to ensure that all Teams chat messages containing sensitive information are automatically monitored and restricted. Which feature should the administrator configure?

A) Microsoft 365 Data Loss Prevention (DLP) Policies
B) Microsoft Intune Device Compliance Policies
C) Exchange Online Mailbox Rules
D) Azure AD Identity Protection

Answer: A) Microsoft 365 Data Loss Prevention (DLP) Policies

Explanation:

Microsoft 365 Data Loss Prevention (DLP) Policies are specifically designed to detect, monitor, and prevent the sharing of sensitive information across Microsoft 365 services. DLP policies can scan Teams chat messages, email content, and documents stored in SharePoint or OneDrive for sensitive data types such as personally identifiable information (PII), financial information, or intellectual property. Once sensitive content is detected, DLP policies can enforce various actions such as blocking the message, notifying the sender, logging the event, or applying encryption. By configuring DLP policies, administrators ensure that Teams messages containing sensitive information do not leave the organization, protecting data integrity and complying with regulatory requirements. DLP also provides insights and reports for auditing purposes, which allows organizations to track incidents, evaluate risk trends, and improve user awareness through training or policy tips.

Microsoft Intune Device Compliance Policies enforce security requirements on devices, including encryption, PIN enforcement, OS version, or anti-malware protection. Although Intune policies enhance device security and can be integrated with Conditional Access to control access to Microsoft 365 services, they do not monitor or restrict content in Teams messages. Device compliance focuses on endpoint security rather than the inspection or protection of sensitive data shared in collaboration tools.

Exchange Online Mailbox Rules allow administrators and users to manage incoming or outgoing email messages through conditions and actions such as forwarding, redirecting, or categorizing emails. Mailbox rules do not apply to Teams chat messages and cannot enforce organization-wide content monitoring for sensitive information across Microsoft 365 workloads. These rules are limited to email messages and do not provide automated content protection across multiple collaboration channels.

Azure AD Identity Protection focuses on detecting risky sign-ins and compromised accounts. It can trigger Conditional Access policies to restrict access when risk is detected, but it does not monitor content for sensitive information or enforce restrictions on Teams messages. Identity Protection strengthens account security but is not designed for content-level DLP monitoring or real-time message restriction.

By implementing Microsoft 365 DLP Policies, organizations gain comprehensive coverage for sensitive content protection. DLP policies allow automated detection and enforcement, ensuring consistent protection across all collaboration channels. Administrators can define sensitive data types, configure actions for policy violations, and monitor enforcement effectiveness through audit logs. This proactive solution reduces the risk of accidental or intentional data leaks, ensures regulatory compliance, and educates users on handling sensitive information properly. DLP integrates seamlessly with Microsoft Teams, Exchange Online, OneDrive, and SharePoint, enabling centralized management and scalable deployment across the tenant. It balances user productivity with organizational security, providing both automated protection and visibility into sensitive content activity, which is essential in modern collaboration environments.

Question 21

A company wants to ensure that only devices meeting corporate security requirements can access Microsoft 365 apps. Which two components are required?

A) Azure AD Conditional Access
B) Microsoft Intune Device Compliance
C) Microsoft Purview Information Protection
D) Exchange Online Retention Policies

Answer: A) Azure AD Conditional Access, B) Microsoft Intune Device Compliance

Explanation:

Azure AD Conditional Access is a cloud-based policy engine that evaluates conditions such as user identity, device compliance status, location, and application risk before granting access to Microsoft 365 apps. By enforcing Conditional Access policies, administrators can restrict access to only trusted and compliant devices, ensuring that sensitive data is not exposed to insecure endpoints. Conditional Access policies can also require multi-factor authentication (MFA), enforce session controls, or integrate with other security tools to provide comprehensive access management. Without Conditional Access, there is no mechanism to enforce access restrictions based on device posture, making it a critical component in securing Microsoft 365 resources.

Microsoft Intune Device Compliance policies define what constitutes a secure device. These policies allow administrators to specify requirements such as device encryption, PIN complexity, operating system version, security patch levels, or anti-malware software. Intune evaluates devices against these policies and reports compliance status to Azure AD. Conditional Access then uses this compliance data to determine whether a device can access Microsoft 365 applications. Intune provides the necessary device signal, enabling organizations to enforce security policies and reduce the risk of compromised or non-compliant devices gaining access. Without Intune compliance evaluation, Conditional Access would lack the information needed to enforce device-based restrictions effectively.

Microsoft Purview Information Protection focuses on classifying, labeling, and protecting content based on sensitivity. While it is essential for protecting data stored in emails, documents, or SharePoint sites, it does not provide information about device compliance or enforce access restrictions based on device security posture. Purview is content-focused, whereas device-based access control requires Conditional Access and Intune compliance.

Exchange Online Retention Policies govern the lifecycle of emails, including automatic retention, deletion, and archiving. While retention policies support compliance and data governance, they do not control which devices or users can access Microsoft 365 applications. Retention policies are content management tools rather than access enforcement tools.

Combining Azure AD Conditional Access with Intune Device Compliance ensures that only devices meeting security requirements can access Microsoft 365 apps. This integrated approach enhances organizational security, reduces risk exposure, and provides administrators with the ability to enforce and monitor access policies dynamically. It also supports scalability across multiple device types and platforms while maintaining user productivity, compliance, and visibility into device security posture. Organizations can configure exceptions, monitor access events, and adjust policies as security requirements evolve, creating a robust and flexible security framework for Microsoft 365 access.

Question 22

A company wants to enforce multi-factor authentication (MFA) for all users but only when they access Microsoft 365 from unmanaged devices. Which feature should the administrator configure?

A) Azure AD Conditional Access
B) Microsoft Intune Device Compliance
C) Exchange Online Mailbox Policies
D) Microsoft Purview Retention Labels

Answer: A) Azure AD Conditional Access

Explanation:

Azure AD Conditional Access is a policy-based access control mechanism that evaluates conditions such as user identity, device compliance, location, and risk level before granting access to Microsoft 365 resources. In this scenario, the organization wants MFA to be required only when users access Microsoft 365 from unmanaged devices, which are devices that do not meet the organization’s compliance criteria. Conditional Access can enforce this by integrating with Microsoft Intune, which provides the compliance signals for devices. Administrators can create a policy that specifies that users on unmanaged devices must complete MFA before access is granted, while users on managed or compliant devices can access resources without additional authentication steps. This ensures a balance between security and usability, enforcing MFA only when risk is elevated, rather than requiring it for all access regardless of device posture. Conditional Access is highly configurable, allowing rules to target specific users, groups, or applications, providing granular control over authentication and access enforcement. It can also enforce session controls, such as limited access, persistent browser sessions, or app-enforced restrictions. By using Conditional Access, the organization reduces the risk of unauthorized access from insecure devices while maintaining productivity for users on managed endpoints.

Microsoft Intune Device Compliance alone defines what constitutes a compliant device, such as encryption, PIN enforcement, or OS version requirements. While Intune generates the compliance signal, it cannot independently enforce MFA. Device compliance must be used in conjunction with Conditional Access to trigger actions based on compliance status. Intune ensures devices are secure, but it does not determine authentication requirements without Conditional Access policies evaluating the compliance data.

Exchange Online Mailbox Policies manage settings such as mailbox access, retention, mobile device PIN requirements, and limited configuration options for email. While mailbox policies provide some security controls, they cannot enforce MFA for unmanaged devices or apply conditional authentication rules across Microsoft 365 applications. Mailbox policies are email-specific and are not capable of evaluating device compliance or triggering authentication policies.

Microsoft Purview Retention Labels are used for classifying and protecting content based on sensitivity, including retention or deletion schedules. While critical for compliance and data governance, retention labels do not enforce access control, authentication policies, or device-based restrictions. They are content-focused rather than authentication or access-focused.

Conditional Access is the correct solution because it integrates device compliance, user identity, and environmental signals to enforce MFA dynamically. This ensures security policies are adaptive and risk-aware, providing robust protection without overburdening users. By enforcing MFA selectively, organizations can reduce the risk of credential compromise, limit access from insecure endpoints, and maintain operational efficiency while complying with regulatory or organizational security standards. Conditional Access policies can be monitored, tested, and adjusted over time, providing a flexible, scalable solution for modern cloud environments. It also supports integration with identity protection tools to automatically block high-risk sign-ins or suspicious activity.

Question 23

An organization wants to track user activities such as file downloads, document edits, and sign-ins across Microsoft 365 for compliance reporting. Which feature should the administrator use?

A) Microsoft 365 Audit Logs
B) Microsoft Purview Data Loss Prevention (DLP) Policies
C) Azure AD Identity Protection
D) Exchange Online Message Trace

Answer: A) Microsoft 365 Audit Logs

Explanation:

Microsoft 365 Audit Logs provide a centralized repository for tracking and monitoring activities performed across Microsoft 365 services. This includes user actions such as document uploads, edits, deletions, file downloads, and mailbox activities. Audit logs also capture sign-in events, administrative actions, and changes made to configurations, allowing organizations to maintain full visibility into operational and user activity for security and compliance purposes. Audit logs support search, filtering, and export capabilities, making it possible to generate detailed reports for internal compliance, regulatory audits, or incident investigations. Administrators can create alerts for suspicious or unusual activity, detect policy violations, and maintain accountability across the organization. Audit Logs can be integrated with Microsoft Sentinel or third-party Security Information and Event Management (SIEM) systems, providing enhanced analysis, automated alerting, and comprehensive reporting capabilities. This ensures that organizations can meet compliance requirements and demonstrate governance over critical data and user activity.

Microsoft Purview Data Loss Prevention (DLP) Policies are used to prevent the sharing or leakage of sensitive information, such as personally identifiable information (PII), financial data, or intellectual property. DLP policies detect and restrict actions involving sensitive content, including emails and documents, but they do not provide a comprehensive, historical record of all user activity for reporting purposes. DLP policies focus on protection and prevention, not auditing or detailed activity tracking. While DLP may generate incident logs when policies are triggered, it is not designed for full activity monitoring across Microsoft 365 workloads.

Azure AD Identity Protection monitors account sign-ins and evaluates risk signals such as impossible travel, sign-ins from unfamiliar locations, or compromised credentials. It can trigger Conditional Access policies based on risk levels, but it does not track granular user activities across Microsoft 365 workloads like document edits, downloads, or configuration changes. Identity Protection focuses on identity risk management rather than operational activity auditing.

Exchange Online Message Trace tracks email delivery, routing, and status within Exchange Online. It provides visibility into whether messages were delivered, failed, or quarantined. While useful for troubleshooting email delivery or investigating message flow, Message Trace does not monitor other user activities such as document edits in SharePoint, file downloads from OneDrive, or Teams activities. It is specific to email transport and cannot provide comprehensive audit reporting across Microsoft 365.

By using Microsoft 365 Audit Logs, organizations gain full visibility into user and administrator actions, allowing them to maintain compliance with regulatory standards such as GDPR, HIPAA, or ISO 27001. Audit logs allow administrators to investigate incidents, understand user behavior, and implement corrective actions. The logs also provide the foundation for proactive monitoring, risk management, and forensic investigations. By integrating audit logs with reporting tools, organizations can generate dashboards and visualizations that highlight trends, anomalies, or potential policy violations. This centralized, comprehensive approach ensures that the organization can maintain accountability, improve security posture, and meet legal and compliance obligations across all Microsoft 365 workloads.

Question 24

A company wants to automatically classify and encrypt sensitive documents stored in SharePoint and OneDrive. Which feature should the administrator configure?

A) Microsoft Purview Information Protection – Auto-labeling
B) Azure AD Conditional Access
C) Exchange Online Data Loss Prevention (DLP) Policies
D) Microsoft Intune Device Compliance

Answer: A) Microsoft Purview Information Protection – Auto-labeling

Explanation:

Microsoft Purview Information Protection (MIP) Auto-labeling provides automated classification and protection of content stored in Microsoft 365, including SharePoint and OneDrive. Administrators can define policies that scan files for sensitive information, such as financial data, personally identifiable information (PII), or proprietary business data. Once detected, the system applies sensitivity labels automatically. Labels can enforce encryption, restrict access to authorized users, prevent copying or downloading, and display visual markings that indicate the confidentiality level. Auto-labeling ensures consistent application of organizational security policies without relying on manual user intervention, reducing human error while maintaining compliance with regulatory and internal standards.

Azure AD Conditional Access controls access to Microsoft 365 applications based on identity, device compliance, location, and risk. While Conditional Access can block or allow access to sensitive content based on device posture, it does not inspect files or automatically apply classification and encryption policies. Conditional Access focuses on access control rather than content protection.

Exchange Online Data Loss Prevention (DLP) Policies detect and prevent sensitive data from leaving Microsoft 365 through emails or documents. DLP can restrict actions such as sending, sharing, or printing sensitive content, but it does not automatically apply classification or encryption labels to documents. DLP is reactive and content-aware but does not provide automated labeling for protection.

Microsoft Intune Device Compliance ensures that devices meet security standards, such as encryption, OS version, and antivirus status. Compliance policies provide signals to Conditional Access but do not classify, label, or encrypt content stored in SharePoint or OneDrive. Device compliance enhances endpoint security but does not enforce document-level protection.

By configuring Microsoft Purview Auto-labeling, organizations automate the protection of sensitive information across cloud storage. Auto-labeling policies scan content continuously, apply the correct labels, and enforce encryption and access restrictions automatically. This approach ensures that sensitive data is consistently secured, reducing the risk of accidental exposure. Administrators can define rules based on content types, keywords, or patterns, and adjust policies dynamically as organizational needs evolve. Auto-labeling supports compliance with regulations such as GDPR, HIPAA, or ISO 27001, provides audit logs for monitoring, and integrates with other Microsoft 365 security features for a comprehensive data protection strategy. This automated, policy-driven approach streamlines content governance, improves operational efficiency, and enhances the security posture of the organization.

Question 25

A company wants to prevent users from accessing Microsoft 365 services from devices that are not domain-joined or compliant with corporate security policies. Which feature should the administrator implement?

A) Azure AD Conditional Access
B) Microsoft Purview Information Protection
C) Microsoft 365 Retention Policies
D) Exchange Online Mailbox Rules

Answer: A) Azure AD Conditional Access

Explanation:

Azure AD Conditional Access is a critical tool for controlling access to Microsoft 365 services based on contextual conditions such as device compliance, domain membership, user location, and risk signals. In this scenario, the organization seeks to block access from devices that are neither domain-joined nor compliant with corporate policies. Conditional Access policies allow administrators to enforce these restrictions by integrating with Microsoft Intune, which provides the device compliance status. The policy can be configured to evaluate whether the device is managed, domain-joined, or meets security compliance rules, such as encryption, OS version, and antivirus protection. If a device does not meet the criteria, access to Microsoft 365 services can be blocked or limited, ensuring sensitive corporate data is protected from unsecured endpoints. Conditional Access provides granular control over access to apps and services and supports multi-factor authentication (MFA) for additional security.

Microsoft Purview Information Protection is used to classify, label, and protect sensitive content across Microsoft 365, including emails, documents, and files stored in SharePoint or OneDrive. While it is essential for protecting sensitive content, it does not enforce access control based on device compliance or domain membership. Purview focuses on content-level security rather than controlling device access to services.

Microsoft 365 Retention Policies manage the lifecycle of content by ensuring that documents and emails are retained for a specified period or deleted according to regulatory or organizational requirements. While retention policies help with compliance and governance, they do not control access to Microsoft 365 services or enforce security restrictions on devices. Retention policies are content-focused and do not evaluate device posture or compliance.

Exchange Online Mailbox Rules allow administrators or users to manage the flow of emails, such as applying actions based on message content, sender, or recipient. Mailbox rules cannot evaluate device compliance or enforce access restrictions across Microsoft 365 services. They are limited to email management and cannot provide tenant-wide access control.

By implementing Azure AD Conditional Access, organizations ensure that only authorized and compliant devices can access Microsoft 365 resources, reducing the risk of unauthorized access, data leakage, or compromise. This approach aligns with the principle of least privilege and strengthens overall security posture. Administrators can create policies targeting specific users, groups, or applications, enforce MFA for risky sign-ins, and restrict access based on device status. Integration with Intune provides real-time signals about device compliance, and Conditional Access enforces policies dynamically, adapting to changing conditions or user risk levels. This enables organizations to maintain productivity while securing corporate data, providing visibility into access patterns, and ensuring compliance with internal policies and external regulations. Conditional Access can be monitored and adjusted to reflect organizational needs, providing a scalable and adaptive security framework for Microsoft 365.

Question 26

A company wants to automatically detect and protect sensitive information in documents stored in OneDrive and SharePoint. Which Microsoft 365 feature should the administrator configure?

A) Microsoft Purview Information Protection – Auto-labeling
B) Azure AD Conditional Access
C) Microsoft Intune Device Compliance
D) Exchange Online Data Loss Prevention (DLP) Policies

Answer: A) Microsoft Purview Information Protection – Auto-labeling

Explanation:

Microsoft Purview Information Protection Auto-labeling is designed to automatically classify and protect sensitive content stored in Microsoft 365 services, including OneDrive and SharePoint. Administrators can create rules that inspect documents for sensitive data types such as financial information, personally identifiable information (PII), or intellectual property. When sensitive content is detected, the system automatically applies predefined sensitivity labels that may include encryption, access restrictions, and visual markings indicating confidentiality. This ensures consistent enforcement of data protection policies without relying on end users to classify documents manually. Auto-labeling reduces the risk of human error, prevents accidental data exposure, and supports compliance with regulatory requirements such as GDPR, HIPAA, and ISO standards. Auto-labeling policies can be customized to include exceptions, monitor effectiveness, and generate detailed audit logs for compliance reporting.

Azure AD Conditional Access controls access to Microsoft 365 apps based on identity, device compliance, and risk signals. While Conditional Access can restrict access to sensitive content or require multi-factor authentication, it does not inspect the content of documents stored in OneDrive or SharePoint and cannot automatically apply classification or protection. Conditional Access is focused on controlling who can access resources, rather than protecting the content itself.

Microsoft Intune Device Compliance ensures that devices meet security requirements, such as encryption, PIN enforcement, operating system version, and antivirus protection. Compliance policies provide signals for Conditional Access but do not classify or protect documents stored in OneDrive or SharePoint. Intune protects endpoints but does not address content-level security or automate labeling of sensitive files.

Exchange Online Data Loss Prevention (DLP) Policies monitor and prevent sensitive content from being shared through emails or other channels. While DLP is effective for preventing accidental or unauthorized sharing of sensitive data, it does not automatically classify or apply protection labels to documents stored in OneDrive or SharePoint. DLP is reactive, focusing on actions performed with sensitive content, whereas auto-labeling is proactive and policy-driven, ensuring that protection is applied at the moment content is detected.

By configuring Microsoft Purview Auto-labeling, organizations can enforce consistent and automated protection of sensitive documents, reducing human error and improving security compliance. Auto-labeling policies scan content continuously, apply sensitivity labels, enforce encryption, restrict access to authorized users, and generate visual markings to educate users about content sensitivity. Administrators can monitor policy effectiveness, adjust rules dynamically, and integrate with other Microsoft 365 security tools for comprehensive data protection. Auto-labeling is scalable across multiple workloads, including SharePoint, OneDrive, and Teams, ensuring organization-wide protection and reducing the risk of data breaches. This approach streamlines compliance management, maintains visibility into sensitive content, and enables proactive protection, aligning with both operational and regulatory requirements.

Question 27

A company wants to delegate Microsoft 365 administrative tasks to a helpdesk team without giving them full Global Administrator rights. Which role should the administrator assign?

A) User Administrator
B) Global Reader
C) Exchange Administrator
D) Compliance Administrator

Answer: A) User Administrator

Explanation:

The User Administrator role in Microsoft 365 plays a crucial part in enabling organizations to delegate operational tasks without giving unnecessary or overly broad administrative privileges. It is specifically designed for scenarios in which individuals, such as helpdesk technicians or user support personnel, need to manage everyday account-related activities but should not have access to sensitive tenant-wide settings or high-risk administrative functions. By assigning the User Administrator role, organizations can maintain a secure operational environment while still ensuring that essential user management processes run smoothly and efficiently.

One of the primary responsibilities granted to a User Administrator is the ability to manage user accounts throughout their lifecycle. This includes creating new user accounts when employees join the organization, updating account details when personnel change roles, and disabling or deleting accounts when employees leave. This role also allows administrators to perform password resets, unlock user accounts, and manage multifactor authentication for users, which are some of the most common tasks helpdesk teams handle daily. These functions are essential for minimizing downtime for employees and maintaining a responsive support structure.

In addition to account management, the User Administrator role allows the assignment and removal of Microsoft 365 licenses. This task is common in organizations that need to ensure users have access to the tools and services required for their jobs. Since licenses can be expensive and vary in functionality, having a designated team manage them helps maintain cost control and ensures proper allocation. The role also allows for group membership management, enabling helpdesk staff to add or remove users from security groups, distribution lists, and Microsoft 365 groups. This is critical because group membership often dictates access to files, applications, and collaboration spaces.

Importantly, the User Administrator role supports the principle of least privilege. This principle states that users should be granted only the minimal access required to perform their job responsibilities. By granting helpdesk personnel the User Administrator role rather than broader privileges, such as Global Administrator, an organization can significantly reduce its attack surface. If a helpdesk account is compromised, the potential damage is limited because the attacker would not have access to modify tenant-wide configurations, change security policies, or access sensitive administrative features. This separation of duties ensures that administrative power is appropriately distributed while maintaining robust security controls.

The role also includes reporting capabilities that allow organizations to track the actions taken by User Administrators. Having audit logs and activity reports ensures accountability and supports compliance with internal policies or external regulations. These reports can help identify unusual behavior, detect misuse of privileges, and demonstrate adherence to governance requirements during audits. By maintaining visibility into administrative activities, organizations can strengthen operational integrity and reduce risk.

In contrast, the Global Reader role offers a very different set of capabilities. This role provides read-only access across all Microsoft 365 services, making it suitable for auditors, compliance personnel, or managers who need oversight of tenant configurations but do not need to perform any operational tasks. Global Reader is valuable for monitoring but is not appropriate for helpdesk staff because it cannot modify or manage user accounts, assign licenses, or perform password resets. While helpful for visibility, it does not enable day-to-day user support functions.

The Exchange Administrator role is another role that may appear to be relevant at first glance but is not appropriate for general helpdesk operations. While this role grants the ability to manage mailboxes, distribution lists, email policies, and mail flow rules, its scope is limited specifically to Exchange Online. It does not allow user management outside the email environment, nor does it provide the ability to reset passwords or manage licenses. Assigning the Exchange Administrator role to helpdesk personnel would unnecessarily expose them to advanced email administration settings while leaving them unable to perform broader user management responsibilities.

Similarly, the Compliance Administrator role focuses on organizational compliance, retention labels, eDiscovery, auditing, and data governance. This role is intended for legal teams, compliance officers, and security personnel who manage regulatory and policy-related tasks. It grants access to sensitive compliance features that should not be given to helpdesk staff. Moreover, it does not include the ability to manage users, licenses, or groups, making it unsuitable for operational support. Assigning this role to helpdesk personnel would not only fail to meet their needs but also potentially expose confidential compliance-related data.

By selecting the User Administrator role, organizations can establish a secure and efficient workflow for user lifecycle management. Helpdesk teams gain the necessary capabilities to support employees, respond to operational issues quickly, and maintain productivity across the organization. At the same time, administrators retain control over sensitive configurations and tenant-wide settings, ensuring that the environment remains secure and compliant. This balanced delegation of duties allows organizations to scale their support structure safely while minimizing operational risks.

Overall, the User Administrator role is the most appropriate choice for helpdesk personnel because it offers the ideal combination of operational capability, security, and controlled access. It directly supports day-to-day tasks, aligns with best security practices, and helps maintain a structured and accountable administrative environment.

Question 28:

A company wants to ensure that sensitive emails containing financial information are automatically encrypted before leaving the organization. Which feature should the administrator configure?

A) Microsoft Purview Information Protection – Sensitivity Labels with Encryption
B) Azure AD Conditional Access
C) Microsoft Intune Device Compliance
D) Exchange Online Retention Policies

Answer: A) Microsoft Purview Information Protection – Sensitivity Labels with Encryption

Explanation:

Microsoft Purview Information Protection (MIP) allows administrators to classify and protect emails and documents using sensitivity labels. When sensitivity labels are configured with encryption, emails containing sensitive data such as financial information can be automatically encrypted to prevent unauthorized access. Administrators can define auto-labeling rules to detect specific types of sensitive content, including credit card numbers, social security numbers, or internal financial reports. Once detected, the label applies encryption automatically, restricting access to authorized recipients and preventing forwarding, copying, or printing by unauthorized users. This ensures that sensitive emails leaving the organization remain protected and compliant with regulatory standards such as GDPR, SOX, or HIPAA.

Azure AD Conditional Access controls access to Microsoft 365 apps based on user identity, device compliance, location, and risk level. While Conditional Access can require MFA or block access from non-compliant devices, it does not automatically encrypt email content or apply sensitivity labels to messages. Conditional Access focuses on access control rather than content protection, making it insufficient for automatically encrypting sensitive emails.

Microsoft Intune Device Compliance enforces security configurations on devices such as encryption, PIN enforcement, and antivirus status. While device compliance can work with Conditional Access to restrict access to Microsoft 365 apps, it does not detect sensitive email content or apply encryption to messages leaving the organization. Intune is focused on endpoint security, not content-level protection.

Exchange Online Retention Policies manage the lifecycle of email messages by specifying retention or deletion periods. Retention policies help meet compliance and governance requirements but do not automatically detect sensitive content or encrypt emails. Retention focuses on data preservation rather than securing content before delivery.

By configuring sensitivity labels with encryption in Microsoft Purview Information Protection, organizations ensure proactive, automated protection of sensitive emails. Auto-labeling rules scan the content of messages for financial data and apply encryption policies automatically, eliminating reliance on end users to manually protect sensitive information. This reduces the risk of accidental exposure, supports compliance, and provides audit logs for monitoring and reporting. Sensitivity labels integrate with Office apps and Exchange Online, ensuring consistent protection across all endpoints and communication channels. Administrators can configure different protection levels for various content types, enforce access restrictions, and educate users through visual markings or policy tips. This approach enhances security, prevents data leakage, maintains regulatory compliance, and supports organizational policies by automatically securing sensitive emails before they are transmitted outside the organization. It provides a scalable, centralized solution for protecting critical information across Microsoft 365 while balancing user productivity and security.

Question 29:

A company wants to provide temporary access to Microsoft 365 resources for external contractors, ensuring access expires after a defined period. Which feature should the administrator configure?

A) Azure AD Guest Access with Expiration Policies
B) Microsoft 365 Retention Labels
C) Exchange Online Mailbox Rules
D) Microsoft Purview Data Loss Prevention (DLP) Policies

Answer: A) Azure AD Guest Access with Expiration Policies

Explanation:

Azure AD Guest Access allows organizations to invite external users to collaborate in Microsoft 365, including Teams, SharePoint, and OneDrive. When combined with expiration policies, administrators can define a specific duration for guest access, after which the account is automatically disabled or removed. This ensures that contractors or temporary collaborators have access only for the required time, minimizing security risks associated with stale or orphaned accounts. Expiration policies help maintain compliance, reduce the attack surface, and prevent unauthorized access after a contractor’s engagement ends. Administrators can configure notifications to remind guests or administrators before expiration, allowing time for renewal if required. Guest access permissions can be further customized to restrict file access, sharing capabilities, or Teams functionalities, ensuring secure collaboration while maintaining operational efficiency.

Microsoft 365 Retention Labels classify and preserve content based on regulatory or organizational policies. While retention labels ensure emails and documents are retained or deleted according to defined rules, they do not control user access or enforce expiration for guest accounts. Retention focuses on content management, not identity or access control.

Exchange Online Mailbox Rules allow administrators or users to manage the flow of emails, including filtering, forwarding, or applying actions based on message content. Mailbox rules are email-specific and cannot manage guest accounts or enforce access expiration policies across Microsoft 365. They provide operational control over email flow but do not manage access or lifecycle for external users.

Microsoft Purview Data Loss Prevention (DLP) Policies monitor and restrict sensitive data sharing across Microsoft 365. While DLP can prevent leaks or unauthorized sharing, it does not provide mechanisms for granting temporary access to external collaborators or automatically expiring accounts. DLP is content-focused rather than user or access-focused.

By using Azure AD Guest Access with Expiration Policies, organizations ensure secure, time-bound collaboration for contractors. Administrators can monitor guest activity, revoke access automatically when it is no longer needed, and minimize security risks associated with prolonged access. This approach aligns with the principle of least privilege, enforces compliance with organizational policies, and simplifies the lifecycle management of external users. Integration with Conditional Access can further enforce device and identity security requirements for guests, providing end-to-end control over external collaboration. The feature is scalable across the tenant, allowing administrators to maintain a secure environment while enabling productivity with external partners. Audit logs and reporting help track guest account activity, review access history, and provide compliance evidence during audits or security reviews.

Question 30:

A company wants to ensure that all Microsoft Teams messages are retained for five years for regulatory compliance but can also be deleted if necessary. Which feature should the administrator configure?

A) Microsoft 365 Retention Policies with Retain and Delete Settings
B) Azure AD Conditional Access
C) Exchange Online Mailbox Rules
D) Microsoft Intune Device Compliance Policies

Answer: A) Microsoft 365 Retention Policies with Retain and Delete Settings

Explanation:

Microsoft 365 Retention Policies allow administrators to manage the lifecycle of content across Microsoft 365 services, including Teams chat messages, emails, SharePoint documents, and OneDrive files. By configuring a retention policy with “retain and delete” settings, organizations can ensure that Teams messages are preserved for a specified period, in this case, five years, while allowing content to be deleted after the retention period or under approved conditions. This approach supports regulatory compliance, reduces the risk of accidental or premature deletion, and ensures that records are available for audits, investigations, or legal requirements. Retention policies can be applied to specific users, groups, or sites, providing flexibility and granular control over which content is subject to compliance requirements. Administrators can monitor retention policy effectiveness, generate reports, and make adjustments as regulatory or organizational requirements evolve. Retention policies also integrate with Microsoft Purview eDiscovery tools, enabling searches, holds, and content export when required for legal or compliance purposes.

Azure AD Conditional Access manages access to Microsoft 365 apps based on identity, device compliance, or risk levels. While it is essential for securing access and enforcing MFA or device restrictions, it does not manage the retention or lifecycle of Teams messages. Conditional Access focuses on who can access services, not how long content is retained or when it can be deleted.

Exchange Online Mailbox Rules allow administrators or users to define actions for incoming or outgoing emails, such as forwarding, categorizing, or deleting messages. While mailbox rules help manage email flow, they do not provide organization-wide retention policies for Teams messages or other Microsoft 365 content. Mailbox rules are reactive and cannot enforce retention periods or regulatory compliance requirements.

Microsoft Intune Device Compliance ensures that devices meet security standards such as encryption, PIN enforcement, and OS patching. While it integrates with Conditional Access to control access to Microsoft 365 apps, it does not manage content retention or lifecycle policies for Teams messages. Device compliance enhances endpoint security but does not address regulatory retention requirements.

By configuring Microsoft 365 Retention Policies with retain and delete settings, organizations can meet regulatory obligations while maintaining flexibility in content management. Teams messages are preserved for the required five-year period, ensuring they are available for compliance audits, internal investigations, or legal purposes. After the retention period, content can be deleted according to policy, freeing storage and maintaining operational efficiency. Administrators can configure retention labels, review audit logs, and generate compliance reports to ensure policy adherence. Integration with Microsoft Purview eDiscovery tools allows for quick retrieval of retained messages if required, providing end-to-end governance, security, and compliance across Microsoft 365 workloads. This approach balances regulatory compliance with operational efficiency, reduces the risk of accidental deletion, and provides a scalable solution for content lifecycle management across the organization.