This post is a part of the PL-300: Microsoft Power BI Data Analyst Exam Prep Hub; and this topic falls under these sections:
Prepare the data (25–30%)
  --> Get or connect to data
    --> Change data source settings, including credentials and privacy levels

Below are 10 practice questions (with answers and explanations) for this topic of the exam.
There are also 2 practice tests for the PL-300 exam with 60 questions each (with answers) available on the hub.

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Practice Questions

Question 1

A dataset refresh succeeds in Power BI Desktop but fails after being published to the Power BI Service. What is the most likely cause?

A. Privacy levels were set incorrectly in Desktop
B. Credentials were not configured in the Power BI Service
C. Query folding was disabled
D. The dataset uses Import mode

✅ Correct Answer: B

Explanation:
Credentials used in Power BI Desktop do not automatically transfer to the Power BI Service. They must be configured separately.

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Question 2

Which authentication method is most commonly used when connecting to cloud-based data sources in the Power BI Service?

A. Windows authentication
B. Database authentication
C. OAuth (Microsoft Entra ID)
D. Anonymous authentication

✅ Correct Answer: C

Explanation:
Cloud data sources typically use OAuth through Microsoft Entra ID for secure authentication.

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Question 3

What is the primary purpose of privacy levels in Power BI?

A. To encrypt data at rest
B. To restrict report sharing
C. To prevent unintended data leakage when combining sources
D. To improve dataset refresh performance

✅ Correct Answer: C

Explanation:
Privacy levels isolate data sources to prevent sensitive data from being unintentionally shared across sources.

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Question 4

A Power BI model combines data from a Private SQL database and a Public web source. What is a potential impact of this configuration?

A. Scheduled refresh will be disabled
B. Query folding may be prevented
C. Calculated measures will not work
D. Row-level security will be removed

✅ Correct Answer: B

Explanation:
When combining sources with different privacy levels, Power BI may prevent query folding to enforce data isolation.

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Question 5

Which privacy level should be assigned to internal corporate data sources?

A. Public
B. Anonymous
C. Organizational
D. Private

✅ Correct Answer: C

Explanation:
Organizational privacy level is intended for internal company data that can be shared within the organization.

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Question 6

Which statement about the “Ignore privacy levels” option is true?

A. It applies to both Desktop and Service
B. It permanently disables privacy enforcement
C. It only applies in Power BI Desktop
D. It improves dataset refresh performance in the Service

✅ Correct Answer: C

Explanation:
Ignoring privacy levels is a Desktop-only setting and is not honored during refresh in the Power BI Service.

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Question 7

When are credentials typically required to be re-entered?

A. When a report is viewed by another user
B. When the dataset owner changes
C. When a visual is modified
D. When a slicer is added

✅ Correct Answer: B

Explanation:
Changing dataset ownership often requires credentials to be re-entered to maintain refresh functionality.

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Question 8

Which scenario requires the use of an on-premises data gateway?

A. Connecting to Azure SQL Database
B. Connecting to a Power BI dataset
C. Connecting to an on-premises SQL Server from the Service
D. Connecting to SharePoint Online

✅ Correct Answer: C

Explanation:
On-premises data sources require a gateway to allow the Power BI Service to access them.

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Question 9

What happens if incorrect credentials are configured in the Power BI Service?

A. The report will not open
B. Visuals will display blank data
C. Scheduled refresh will fail
D. The dataset will be deleted

✅ Correct Answer: C

Explanation:
Incorrect credentials cause scheduled refresh failures, even if reports still open using cached data.

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Question 10

Which action should you take first when a scheduled refresh suddenly starts failing?

A. Rebuild the data model
B. Change privacy levels
C. Check and update credentials in the Service
D. Disable query folding

✅ Correct Answer: C

Explanation:
Most unexpected refresh failures are caused by expired or changed credentials and should be checked first.

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Exam Readiness Summary ✅

If you can confidently:

• Distinguish Desktop vs Service credentials
• Explain why privacy levels exist
• Identify refresh and gateway issues
• Understand how privacy levels affect query folding

…then you are well prepared for this PL-300 exam objective.

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