Free Microsoft SC-900 Practice Exam with Questions & Answers | Set: 2

In Microsoft’s Security, Compliance, and Identity guidance, encryption is described as the control that “converts data into a form that cannot be understood by anyone who does not possess the appropriate decryption key.” In the Microsoft Purview Information Protection (sensitivity labels with encryption) documentation, Microsoft explains that when encryption is applied to a file, “only authorized users and services that present the correct keys and usage rights can open and use the content,” and that access is enforced even if the file is moved outside the organization. Azure Rights Management (part of Microsoft Purview) further states that encryption “protects data at rest and in transit by using keys so that only permitted identities can decrypt and use the information.”

This aligns precisely with the sentence: encrypting a file makes the data readable and usable to viewers that have the appropriate key (and unreadable to those who do not). By contrast, archiving organizes or preserves data for long-term storage; compressing reduces file size without controlling access; and deduplicating removes redundant copies to save space. None of these provide the key-based, identity-bound access control described in Microsoft SCI materials. Therefore, the correct completion is Encrypting.

In Microsoft’s SCI guidance, encryption at rest is defined as protecting data when it is stored on a disk or other persistent media. Microsoft describes it as controls that “help safeguard your data to meet your organizational security and compliance commitments by encrypting data when it is persisted,” distinguishing it from protections for data in transit. Within Azure and Microsoft 365, examples include Azure Disk Encryption for IaaS VMs (using BitLocker for Windows and DM-Crypt for Linux), server-side encryption for storage accounts, and Transparent Data Encryption for databases. A virtual machine’s OS and data disks encrypted with BitLocker or DM-Crypt are canonical cases of at-rest encryption because the encryption keys protect the physical media; the data becomes unreadable if the disks are accessed outside the authorized context. By contrast, site-to-site VPN, HTTPS web sessions, and encrypted email protect data in transit—they secure network communications but do not encrypt the data where it is stored. Therefore, among the options provided, encrypting a virtual machine disk is the correct example of encryption at rest in Microsoft’s security model.

In Microsoft’s Security, Compliance, and Identity guidance, Azure AD Privileged Identity Management (PIM) is the service used to manage, control, and monitor access to important resources in Azure and Microsoft 365. The documentation explains that PIM enables “just-in-time” and “time-bound” activation of privileged roles, requiring users to elevate only when needed and for a limited duration. PIM policies can require approval before a role is activated, enforce multifactor authentication, capture business justification, send notifications, and maintain detailed auditing and access review records. These controls are designed to reduce the risk associated with standing administrative privileges by ensuring that elevation is temporary, approved, and tracked.

By contrast, Windows Hello for Business provides strong, device-bound authentication; Azure AD Identity Protection focuses on detecting and remediating risky sign-ins and users; and Azure AD Access Reviews periodically reattest existing assignments but do not provide the on-demand, approval-based, time-limited activation of roles. Therefore, when the requirement is approval-based, time-bound role activation, Microsoft’s prescribed capability is Azure AD PIM, which delivers just-in-time elevation with approvers, duration limits, and audit/logging to support least privilege and Zero Trust operational practices.

Microsoft Learn explains that Azure Active Directory (now Microsoft Entra ID) is a Microsoft-managed identity and access management service delivered from the cloud. It does not require you to provision or host infrastructure such as virtual machines; the directory is operated as a service by Microsoft, and tenants are created and administered within Microsoft’s cloud environment. The official learning paths further clarify that administration is performed through the Azure portal (the Entra/Microsoft Entra admin center and Azure portal blades), PowerShell, and Graph—so managing a tenant in the Azure portal is fully supported.

Regarding licensing, Microsoft’s SCI study materials detail that Azure AD/Entra ID is offered in multiple editions (Free, Microsoft 365 apps edition, Premium P1, and Premium P2). Each edition unlocks different capabilities: for example, features like Conditional Access are in Premium tiers; Identity Protection and Privileged Identity Management (PIM) are P2 capabilities. Because capabilities vary by tier, the statement that all license editions include the same features is incorrect.

Putting this together: feature parity across editions is not the case (No); tenant management in the Azure portal is supported (Yes); and you do not need to deploy Azure VMs to host an Azure AD/Entra ID tenant (No).

Microsoft 365 Information Barriers are compliance policies used “to prevent certain segments of users from communicating or collaborating with each other.” In Microsoft’s guidance, IB policies are designed for scenarios like insider trading restrictions, M & A deal rooms, or research–sales separation, where it’s necessary to block chats, calls, and collaboration between defined user segments. The documentation explains that when IB policies are in place, “users in the blocked segments cannot search, discover, or communicate with each other in Microsoft Teams,” and IB v2 extends these controls to additional collaboration workloads such as SharePoint and OneDrive. By contrast, email restrictions in Exchange Online are addressed through mail flow rules or other Exchange features, not information barriers, and restricting unauthenticated access or external sharing is handled by identity access controls and sharing settings, not IB. Therefore, the specific use case is restricting Microsoft Teams chats (and related collaboration) between certain groups within an organization.

In Microsoft Entra ID (formerly Azure AD), Managed Identities for Azure resources are the built-in way for an Azure resource to authenticate to other Azure services without storing credentials. Microsoft’s documentation states: “Managed identities for Azure resources provide Azure services with an automatically managed identity in Azure Active Directory.” It further distinguishes the two types and clarifies the one used here: “A system-assigned managed identity is enabled directly on an Azure service instance. When enabled, Azure creates an identity for the instance in Azure AD.” Microsoft also emphasizes the lifecycle binding: “This identity is tied to the lifecycle of that service instance and is deleted when the resource is deleted.” Once enabled, the resource can call Azure services by requesting tokens: “You can use this identity to obtain Azure AD tokens for authentication to services that support Azure AD authentication.”

Because the prompt explicitly says “system-assigned”, the correct completion is managed identity. The other options do not match Microsoft’s definition: a user identity refers to a human user; a service principal is the underlying object applications use but isn’t what Azure terms “system-assigned”; and an Azure AD–joined device pertains to device registration, not resource-to-service authentication. Therefore, the sentence correctly reads: “An Azure resource can use a system-assigned managed identity to access Azure services.”

YES YES YES

Microsoft Entra Conditional Access is explicitly described by Microsoft as a system of policies that act as if-then statements: if a user wants to access a resource, then certain controls must be satisfied. These are called Conditional Access policies, and they combine assignments and access controls to enforce organizational requirements.

Among the configurable conditions in a policy is Device platforms. The documentation explains that Conditional Access identifies the device platform (Android, iOS, Windows, macOS, Linux) from the user agent and notes that this condition is typically used with grant controls such as block access or in combination with other controls. This allows administrators to block or allow access based specifically on the operating system of the user’s device.

For scoping, the Users and groups assignment lets you include or exclude groups instead of individual users. Microsoft’s Entra groups overview states that you can create a Conditional Access policy that applies to a group, and that Entra supports both security groups and Microsoft 365 groups, while another architecture article notes that either a security group or a Microsoft 365 Group can be used in Conditional Access policies.