AB-900: Microsoft 365 Copilot and Agent Administration Fundamentals Practice Exam

This practice exam is a part of the AB-900: Microsoft 365 Copilot and Agent Administration Fundamentals Exam Prep Hub.

Question 1 (Scenario-Based Single Answer)

A company plans to deploy Microsoft 365 Copilot to all employees. Before assigning licenses, the IT department wants to verify that users have the required Microsoft 365 subscription.

Which action should the administrator perform first?

A. Enable Microsoft Defender for all users.

B. Verify that users have an eligible Microsoft 365 base license.

C. Create a custom agent for each department.

D. Configure Microsoft Purview retention labels.

Correct Answer: B

Explanation

Microsoft 365 Copilot requires users to have an eligible Microsoft 365 subscription (such as Microsoft 365 E3 or E5, or other qualifying plans) before a Copilot license can be assigned.

A improves security but is not a licensing prerequisite.
C is unrelated to licensing.
D governs data but does not determine Copilot eligibility.

Question 2 (Multiple Answer)

Which THREE Microsoft 365 workloads commonly provide organizational data that Microsoft 365 Copilot can use to generate responses?

A. SharePoint Online

B. Exchange Online

C. Microsoft Teams

D. Windows Registry

E. Azure Virtual Machines

Choose THREE answers.

Correct Answers

✅ A

✅ B

✅ C

Explanation

Microsoft 365 Copilot works across Microsoft Graph and retrieves information from workloads such as:

SharePoint Online
Exchange Online
Microsoft Teams
OneDrive (not listed)

Windows Registry and Azure Virtual Machines are not Microsoft 365 content sources for Copilot.

Question 3 (Single Answer)

Which Microsoft service is primarily responsible for storing and managing user identities used by Microsoft 365?

A. Microsoft Defender XDR

B. Microsoft Purview

C. Microsoft Entra ID

D. Microsoft Intune

Correct Answer: C

Explanation

Microsoft Entra ID provides identity, authentication, authorization, and access management for Microsoft 365 users.

The other services perform security, governance, or device management functions.

Question 4 (Fill in the Blank)

Complete the sentence.

Microsoft 365 Copilot uses Microsoft __________ to securely retrieve organizational information across Microsoft 365 services.

A. Defender

B. Graph

C. Fabric

D. Power BI

Correct Answer: B

Explanation

Microsoft Graph provides a unified API and data layer that enables Microsoft 365 Copilot to access emails, meetings, files, chats, calendars, and other Microsoft 365 data while respecting existing permissions.

Question 5 (Scenario-Based Single Answer)

An administrator wants to identify users who have begun using Microsoft 365 Copilot but are rarely returning after their first week.

Which solution provides this information?

A. Microsoft Intune

B. Microsoft Defender

C. Copilot Analytics

D. Exchange Admin Center

Correct Answer: C

Explanation

Copilot Analytics provides insights into user adoption, repeat usage, engagement trends, and feature utilization.

The remaining tools do not provide Copilot adoption analytics.

Question 6 (Matching)

Match each Microsoft solution with its primary purpose.

Microsoft Solution	Purpose
1. Microsoft Purview	A. Identity management
2. Microsoft Entra ID	B. Compliance and governance
3. Microsoft Defender XDR	C. Threat detection and response

Correct Matching

1 → B
2 → A
3 → C

Explanation

Each Microsoft solution has a specialized role:

Microsoft Purview manages compliance and governance.
Microsoft Entra ID manages identities.
Microsoft Defender XDR provides security monitoring and response.

Question 7 (Scenario-Based Multiple Answer)

A company wants to reduce the risk of Microsoft 365 Copilot exposing overshared files after deployment.

Which TWO actions should administrators take?

A. Review SharePoint permissions.

B. Run SharePoint Data Access Governance Reports.

C. Disable Microsoft Teams.

D. Use Microsoft Purview DSPM for AI to identify risks.

E. Delete Microsoft Graph.

Choose TWO answers.

Correct Answers

✅ B

✅ D

Explanation

SharePoint Data Access Governance Reports identify overshared content, while Microsoft Purview DSPM for AI identifies AI-related exposure risks and recommends remediation.

Reviewing SharePoint permissions is a useful administrative practice, but these two tools are specifically designed for discovering and assessing oversharing risks.

Question 8 (Single Answer)

Which statement correctly describes Microsoft 365 Copilot?

A. It ignores Microsoft 365 permissions when generating responses.

B. It only searches internet content.

C. It respects existing Microsoft 365 permissions and organizational policies.

D. It automatically grants access to restricted SharePoint sites.

Correct Answer: C

Explanation

Microsoft 365 Copilot always respects Microsoft 365 permissions and compliance controls. It cannot retrieve information users are not authorized to access.

The other statements are incorrect.

Question 9 (Scenario-Based Single Answer)

An organization is investigating the accidental sharing of confidential project documents.

Which Microsoft Purview feature should administrators use to locate those files across Exchange, SharePoint, and OneDrive?

A. Content Search

B. Microsoft Defender Antivirus

C. Azure Cost Management

D. Windows Event Viewer

Correct Answer: A

Explanation

Content Search allows investigators to search across Microsoft 365 workloads for emails, documents, Teams messages, and other content during investigations.

The remaining tools are unrelated.

Question 10 (Multiple Answer)

Which THREE capabilities are available in SharePoint Advanced Management?

A. Restricted Site Access

B. Data Access Governance Reports

C. Oversharing insights

D. Windows Update management

E. BIOS configuration

Choose THREE answers.

Correct Answers

✅ A

✅ B

✅ C

Explanation

SharePoint Advanced Management provides capabilities that help organizations secure SharePoint content before and after deploying Microsoft 365 Copilot, including:

Restricted Site Access
Data Access Governance Reports
Oversharing insights and governance capabilities

Windows Update management and BIOS configuration are unrelated.

Question 11 (Scenario-Based Single Answer)

A compliance officer needs to locate all emails and Teams messages related to a legal investigation across Microsoft 365.

Which tool should be used?

A. Microsoft Purview Content Search
B. Microsoft Defender for Endpoint
C. Microsoft Entra ID sign-in logs
D. Microsoft Intune compliance policies

Correct Answer: A

Explanation

Microsoft Purview Content Search allows administrators to search across Exchange, SharePoint, OneDrive, and Teams for investigation and compliance purposes.

Other options are unrelated to content discovery.

Question 12 (Multiple Answer)

Which THREE capabilities are part of Microsoft Purview Data Loss Prevention (DLP)?

A. Detect sensitive information in emails and documents
B. Block or restrict sharing of sensitive data
C. Automatically increase Copilot licensing
D. Apply policies across Microsoft 365 workloads
E. Replace Microsoft Entra ID authentication

Choose THREE answers.

Correct Answers

✅ A
✅ B
✅ D

Explanation

DLP helps:

Identify sensitive data
Prevent accidental sharing
Apply policies across Microsoft 365 services

It does not manage licensing or identity.

Question 13 (Single Answer)

Which Microsoft service enforces identity-based access control for Microsoft 365 Copilot users?

A. Microsoft Defender
B. Microsoft Entra ID
C. Microsoft Purview
D. Microsoft Fabric

Correct Answer: B

Explanation

Microsoft Entra ID manages authentication and authorization, ensuring users only access resources they are permitted to use, including Copilot.

Question 14 (Fill in the Blank)

Microsoft 365 Copilot relies on Microsoft __________ to access organizational data securely.

A. Graph
B. Sentinel
C. Intune
D. Power Automate

Correct Answer: A

Explanation

Microsoft Graph is the API layer that connects Copilot to Microsoft 365 data while enforcing permissions and security controls.

Question 15 (Scenario-Based Single Answer)

A company wants to ensure that confidential HR documents are not included in Copilot responses until they are reviewed.

Which solution should they use?

A. SharePoint Restricted Site Access
B. Microsoft Teams Channels
C. Windows Firewall
D. Azure DevOps Pipelines

Correct Answer: A

Explanation

Restricted Site Access in SharePoint Advanced Management can temporarily block Copilot and search indexing from accessing sensitive sites.

Question 16 (Matching)

Match each Copilot-related feature with its purpose.

Feature	Purpose
1. Copilot Analytics	A. Build custom business assistants
2. Custom Agents	B. Measure adoption and usage
3. Prompt Management	C. Save and reuse prompts

Correct Matching

1 → B
2 → A
3 → C

Question 17 (Multiple Answer)

Which TWO actions can administrators perform in Copilot prompt management?

A. Save prompts
B. Share prompts
C. Encrypt Azure VMs
D. Delete prompts
E. Disable Microsoft Graph

Correct Answers

✅ A
✅ B

Explanation

Prompt management allows users to save and share prompts for reuse and productivity. Deletion may be available depending on configuration, but encryption and Graph changes are unrelated.

Question 18 (Scenario-Based Single Answer)

An organization wants to understand whether employees are using Copilot effectively and frequently returning to it after initial adoption.

Which tool should they use?

A. Microsoft Entra ID logs
B. Copilot Analytics
C. Azure Monitor
D. Microsoft Defender for Cloud

Correct Answer: B

Explanation

Copilot Analytics provides adoption, engagement, and retention metrics for Microsoft 365 Copilot usage.

Question 19 (Single Answer)

Which of the following best describes a custom agent in Microsoft 365 Copilot?

A. A tool that replaces Microsoft Teams
B. A browser extension for Edge
C. A specialized assistant built for organizational tasks and data sources
D. A security policy enforcement engine

Correct Answer: C

Explanation

Custom agents extend Copilot by providing tailored assistance based on organizational data, workflows, and knowledge sources.

Question 20 (Scenario-Based Multiple Answer)

An organization is preparing to deploy Microsoft 365 Copilot and wants to reduce data exposure risks in SharePoint.

Which TWO actions should the administrator take?

A. Run SharePoint Data Access Governance Reports
B. Enable Restricted Site Access
C. Disable Microsoft Entra ID
D. Remove Microsoft Purview policies
E. Turn off Microsoft Teams

Choose TWO answers.

Correct Answers

✅ A
✅ B

Explanation

To reduce oversharing risk:

Governance Reports identify risky sites
Restricted Site Access limits Copilot and search access to sensitive sites

Disabling identity or collaboration services is not appropriate.

Question 21 (Scenario-Based Single Answer)

A company wants to deploy Microsoft 365 Copilot but only pay for usage instead of assigning full user licenses.

Which billing model should they consider?

A. Pay-as-you-go
B. Per-device licensing
C. Free trial licensing only
D. Windows Enterprise licensing

Correct Answer: A

Explanation

Pay-as-you-go allows organizations to be billed based on usage rather than assigning full Copilot licenses to every user.

Other options are not valid Copilot billing models.

Question 22 (Single Answer)

Which requirement must be met before a user can be assigned a Microsoft 365 Copilot license?

A. They must be a SharePoint administrator
B. They must have an eligible Microsoft 365 base license
C. They must install Microsoft Edge extensions
D. They must disable Multi-Factor Authentication

Correct Answer: B

Explanation

Copilot requires a qualifying Microsoft 365 subscription (such as E3 or E5) before a Copilot license can be assigned.

Question 23 (Scenario-Based Multiple Answer)

An organization wants to monitor the health, usage, and lifecycle of agents deployed in Microsoft 365.

Which TWO admin centers should they use?

A. Microsoft 365 admin center
B. Microsoft Power Platform admin center
C. Azure DevOps admin center
D. Microsoft Word desktop app
E. Windows Control Panel

Choose TWO answers.

Correct Answers

✅ A
✅ B

Explanation

Microsoft 365 admin center provides tenant-level monitoring and management of Copilot and agents.
Power Platform admin center provides insights into agent lifecycle, usage, and governance for built agents.

Question 24 (Single Answer)

Which Copilot feature is designed to perform in-depth research across enterprise and web sources to produce structured insights?

A. Analyst
B. Designer
C. Outlook Copilot
D. Windows Recall

Correct Answer: A

Explanation

The Analyst agent is designed for advanced data analysis and structured insights.

Question 25 (Fill in the Blank)

Microsoft 365 Copilot agents are managed throughout their __________ lifecycle.

A. hardware
B. billing
C. application
D. email

Correct Answer: C

Explanation

Agents follow an application lifecycle: creation, deployment, monitoring, updating, and retirement.

Question 26 (Matching)

Match each Copilot capability with its description.

Capability	Description
1. Researcher	A. Builds structured insights from data analysis
2. Analyst	B. Performs deep research across enterprise data
3. Pay-as-you-go	C. Usage-based billing model

Correct Matching

1 → B
2 → A
3 → C

Question 27 (Scenario-Based Single Answer)

A company wants to allow employees to use Copilot without assigning full licenses to everyone, but still wants to track usage costs.

What should they configure?

A. Microsoft Entra Domain Services
B. Pay-as-you-go billing for Copilot
C. Windows Autopilot
D. Microsoft Defender ATP

Correct Answer: B

Explanation

Pay-as-you-go enables usage-based billing, allowing organizations to track and control costs without assigning full licenses to all users.

Question 28 (Multiple Answer)

Which THREE actions are part of managing Microsoft 365 Copilot agents?

A. Monitor usage analytics
B. Manage lifecycle stages
C. Assign physical hardware
D. Control access permissions
E. Delete Microsoft Graph

Correct Answers

✅ A
✅ B
✅ D

Explanation

Agent management includes:

Monitoring usage
Managing lifecycle (create, publish, update, retire)
Controlling access permissions

Hardware management and Graph deletion are unrelated.

Question 29 (Scenario-Based Single Answer)

An administrator wants to review which employees are actively using Copilot and how often they interact with it across departments.

Which tool provides this visibility?

A. Microsoft Intune
B. Copilot Analytics
C. Azure Key Vault
D. Microsoft Defender Firewall

Correct Answer: B

Explanation

Copilot Analytics provides adoption, usage frequency, and engagement metrics across departments and users.

Question 30 (Single Answer)

Which statement best describes Microsoft 365 Copilot agents?

A. They replace Microsoft Entra ID authentication
B. They are hardware devices installed on user machines
C. They extend Copilot with task-specific and organizational knowledge capabilities
D. They are only used for security monitoring