Free MS-700 Practice Test Questions and Answers (2026)

Allowing marketing users to bring external participants into shared channels requires (1) enabling “Invite external users to shared channels” in the Teams policy assigned to that department (C) and (2) permitting cross-tenant inbound B2B direct connect so those external guests can access resources in your tenant (D). Outbound settings or global-scope policy changes are unnecessary.

A. Controls whether users can join external channels; does not permit inviting externals into your channels.

B. Outbound access covers your users entering other tenants, not externals entering yours.

E. Global policy would affect every user; requirement is scoped only to marketing.

1. Microsoft Learn – “Configure cross-tenant access settings for shared channels

” section “Inbound access is required when you invite external users.” https://learn.microsoft.com/microsoftteams/cross-tenant-collaboration#configure-cross-tenant-access-settings

2. Microsoft Learn – “Manage Teams policies for shared channels

” table entry “Invite external users to a shared channel.” https://learn.microsoft.com/microsoftteams/shared-channels#configure-teams-policies

Group mailboxes are used to store copies of messages sent to team channels, not private 1:1 or group chats. Private chat messages are stored in the individual mailboxes of the users participating in the chat. Placing a Litigation Hold on a group mailbox associated with a team will preserve channel conversations for that team, but it will have no effect on the private chats of User1, as those are stored in User1's personal mailbox.

This is a Yes/No question, so there are no other options to evaluate as incorrect.

1. Microsoft Docs. (2024). Learn about retention for Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/purview/retention-policies-teams. The documentation specifies

"Channel messages - A copy of the channel message is stored in the group mailbox for the team

" and "Chats (1:1 and group chats) - A copy of the chat is stored in the mailbox of each user in the chat."

2. Microsoft Docs. (2024). Security and compliance in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/security-compliance-overview. Under the "Information protection" section

it reiterates the storage locations for different Teams data types

confirming the separation between channel and private chat data.

Information barriers require segments to be created first to define the groups of users that need to be separated. Segments are the foundational building blocks that identify users based on attributes like department, location, or other directory properties. Only after segments are defined can you create policies that specify which segments can or cannot communicate with each other. This follows Microsoft's documented implementation sequence for information barriers.

A. Start the information barrier policy application - You cannot apply policies before creating segments and policies.

B. Add an identity provider - Information barriers use existing Azure AD attributes; no additional identity provider is needed.

D. Create one information barrier policy - Policies cannot be created without first defining the segments they will reference.

1. Microsoft Documentation: "Set up information barriers in Microsoft Teams" - docs.microsoft.com/en-us/microsoftteams/information-barriers-in-teams (Section: "Prerequisites and requirements")

2. Microsoft Documentation: "Define information barrier policies" - docs.microsoft.com/en-us/microsoft-365/compliance/information-barriers-policies (Section: "Part 1: Segment users")

3. Microsoft Documentation: "Information barriers in Microsoft 365" - docs.microsoft.com/en-us/microsoft-365/compliance/information-barriers (Section: "How information barriers work")

To convert a user's existing Skype for Business meetings to Microsoft Teams meetings after a tenant is in Teams Only mode, an administrator can use the Meeting Migration Service (MMS). The Start-CsExMeetingMigration PowerShell cmdlet manually triggers this service for a specific user. Alternatively, the user can run the client-side Skype for Business Meeting Update tool to find and convert their own meetings. Both methods achieve the goal of updating the meeting coordinates from Skype for Business to Microsoft Teams.

C. Modifying a meeting policy controls in-meeting features for future meetings, but does not convert existing ones.

D. The Set-CsTeamsUpgradeConfiguration cmdlet configures tenant-wide upgrade settings, not the migration of existing meetings for a user.

E. The upgrade policy has already been set to Teams Only; modifying it again will not trigger the meeting migration process.

- Microsoft. (2023). Using the Meeting Migration Service (MMS). Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/skypeforbusiness/audio-conferencing-in-office-365/setting-up-the-meeting-migration-service-mms. (See section "Triggering meeting migration manually for a user").

- Microsoft. (2023). Start-CsExMeetingMigration. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/powershell/module/skype/start-csexmeetingmigration. (See cmdlet description and parameters).

- Microsoft. (2023). Set up the Meeting Update Tool. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/skypeforbusiness/set-up-the-meeting-update-tool. (See section "What does the Meeting Update Tool do?").

The requirement to automatically add new sales department employees to the "Sales" team points to the need for dynamic membership. Dynamic membership rules for Microsoft 365 Groups (which provide the membership for Microsoft Teams) are configured in the Azure Active Directory admin center. An administrator can create a rule based on user attributes, such as user.department -eq "Sales". Azure AD will then automatically maintain the group's membership, adding or removing users as their department attribute changes, ensuring the team is always up-to-date without manual intervention.

A. Active Directory Users and Computers is used to manage on-premises AD attributes, but it cannot configure cloud-based dynamic group rules.

B. The Microsoft 365 admin center has limited group management capabilities; advanced features like dynamic membership rules are managed in Azure AD.

C. Azure AD Connect is a synchronization tool that replicates user attributes to the cloud; it does not configure group membership logic.

1. Microsoft Learn. (2024). Dynamic membership rules for groups in Azure Active Directory. This document provides a comprehensive overview of how to create rules for dynamic groups. It states

"You can create attribute-based rules to enable dynamic membership for a group in Azure Active Directory (Azure AD)."

2. Microsoft Learn. (2024). Create or edit a dynamic group and get status. This guide provides step-by-step instructions for configuring dynamic membership in the Azure portal (Azure Active Directory admin center). Section "To create a dynamic group" details the process.

3. Microsoft Learn. (2024). Overview of Microsoft 365 Groups for administrators. This document clarifies that Teams are built on Microsoft 365 Groups and that group membership can be either assigned or dynamic.

The solution does not meet the goal. Microsoft Teams private chat messages (1:1 and group chats) are stored as compliance records in a hidden folder within the mailboxes of the chat participants, not in their OneDrive for Business sites. OneDrive for Business is used to store files shared within those private chats. To prevent the permanent deletion of private chat messages, a retention policy or an eDiscovery hold must be applied to the users' Exchange Online mailboxes. Placing a hold on OneDrive for Business will only preserve the files shared, not the chat conversations themselves.

A. The solution is incorrect because it targets the wrong data location. A hold on OneDrive for Business preserves files, not the private chat messages which are stored in Exchange Online mailboxes.

1. Microsoft 365 Compliance Documentation. (2024). Learn about retention for Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/purview/retention-policies-teams. (See the table under "Where Teams data is stored" which specifies "Teams chat messages" are stored in "User mailboxes").

2. Microsoft 365 Compliance Documentation. (2024). Overview of eDiscovery (Premium). Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/purview/ediscovery-premium-overview. (See section "Data sources for eDiscovery (Premium)" which lists Exchange mailboxes for Teams chats and OneDrive accounts for Teams files).

Each Microsoft Team is backed by a Microsoft 365 Group. The Office 365 Groups activity report provides detailed information on the activity within these groups, including a "Last Activity Date." By filtering this report, an administrator can identify groups (and therefore their associated teams) that have had no activity within a specified timeframe, such as the last 90 days. This report directly addresses the need to find inactive teams by looking at the underlying group's activity status.

A. Teams advisor is a tool for planning and deploying Teams features; it does not provide reports on team inactivity.

C. The Teams user activity report focuses on individual user actions across all teams, not the activity status of a specific team as a whole.

D. The Teams usage report provides aggregate data on active users and channels but is not designed to easily identify specific teams that are completely inactive.

1. Microsoft. (2024). Microsoft 365 reports in the admin center - Microsoft 365 Groups activity. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoft-365/admin/activity-reports/microsoft-365-groups-activity. (This document describes the report

its contents

and how it can be used to "see which groups are actively being used").

2. Microsoft. (2023). Microsoft Teams and Microsoft 365 Groups. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/teams-groups-interactivity. (This document explains the relationship between Teams and Microsoft 365 Groups).

An external user who is not a guest in the organization's Azure AD joins a meeting as an anonymous user. The ability for anonymous users to join Teams meetings is a global, organization-wide setting. To allow all external users to join, you must enable this feature from the Microsoft Teams admin center by navigating to Meetings > Meeting settings and turning on the "Anonymous users can join a meeting" option. This setting directly controls access for unauthenticated participants.

A. Guest access allows users from other Microsoft 365 organizations to be added to teams and collaborate, which is different from allowing anonymous meeting join.

C. The "Allow scheduling private meetings" setting is a user-level policy that controls a user's ability to create meetings, not who can join them.

D. Live events policies apply only to Teams live events, which are a broadcast-style meeting format, not standard Teams meetings as specified in the scenario.

1. Microsoft. (2023). Manage meeting settings in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/meeting-settings-in-teams. (See the "Participants" section

which details the "Anonymous users can join a meeting" setting.)

2. Microsoft. (2023). Manage anonymous participant access to Teams meetings (IT admins). Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/anonymous-users-in-meetings. (This document explicitly states

"For anonymous users to join meetings

you must turn on the org-wide setting in the Microsoft Teams admin center.")

When a user's information, such as their display name, is updated in Azure Active Directory, client applications like Microsoft Teams may continue to show the old information due to local caching. The Teams mobile app caches data to improve performance. To force the app to retrieve the updated information from the service, the user must clear the local cache. On mobile devices, this is typically done by signing out and signing back in, or by clearing the app's data/cache through the device's operating system settings.

A. The Sync-CsOnlineApplicationInstance cmdlet is used for service-side application instances like Auto Attendants, not for user display name synchronization.

B. Collecting logs is a diagnostic step to identify a problem's cause; it does not resolve the client-side caching issue itself.

C. Self-help diagnostics are troubleshooting tools and do not directly perform the action needed to clear a client's local cache.

1. Microsoft Docs. (2023). Clear the Teams cache. Microsoft Learn. This document explains that clearing the cache is a standard procedure to resolve issues where outdated information is displayed

and provides steps for various clients

including mobile.

To control which email domains can send emails to a team channel, you must configure the email integration settings within the Microsoft Teams admin center. The org-wide settings contain an "Email integration" section where an administrator can specify a list of accepted domains. By adding contoso.com and fabrikam.com to this allowlist, you ensure that only emails originating from these domains can be successfully delivered to channel email addresses, meeting the requirement.

A. Azure AD External collaboration settings manage guest user access and B2B invitations, not the flow of email to Teams channels.

B. Accepted domains in Exchange Online define domains for which the organization handles email delivery, a much broader setting not specific to Teams channel restrictions.

D. A global teams policy manages user-facing features within Teams, such as channel creation or messaging options, not backend email integration rules.

- Microsoft. (2023). Manage email integration in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/enable-features-office-365#email-integration. (This document outlines the org-wide settings for Teams

including the "Email integration" section where administrators can "Allow or block specific domains" for sending emails to channels.)

- Microsoft. (2023). Manage Teams settings for your organization. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/manage-teams-settings. (Under the "Email integration" section

it details the control to "Accept channel email from these SMTP domains".)

To publish and manage apps within the Microsoft Teams admin center, the Teams Administrator role is required. This role provides comprehensive permissions to manage all aspects of the Teams service, including app setup policies, app permission policies, and managing the app catalog for the organization. While other administrator roles like Application Administrator exist, their scope is Azure AD enterprise applications, not the specific app lifecycle management within the Teams client and admin center. Following the principle of least privilege, the Teams Administrator role is the most appropriate and specific choice among the options provided for this task.

A. The Office Apps Administrator role manages settings for Microsoft 365 apps like Word and Excel, not the Teams app catalog.

C. The Application Administrator role manages enterprise applications in Azure AD, which is too broad and not specific to the Teams app store.

D. The Cloud Application Administrator role is a lower-privileged version of the Application Administrator and also operates at the Azure AD level.

1. Microsoft Learn. (2024). Use Microsoft Teams administrator roles to manage Teams. Section: "Teams administrator". "Teams administrators can manage teams and their settings

and can create and manage app setup policies

permission policies

and custom apps."

2. Microsoft Learn. (2024). Manage your apps in the Microsoft Teams admin center. Section: "Manage org-wide app settings". "To manage these settings

you must be a Global admin or Teams service admin."

The ability for users to create private channels within a team is controlled by a Teams policy. By default, the global (Org-wide default) policy allows private channel creation. To prevent specific users from this action, an administrator must create a new custom Teams policy where the "Create private channels" setting is turned off. This new policy is then assigned directly to the specific users who should be restricted, overriding the global default for them.

B: A meeting policy controls features available within Teams meetings, such as screen sharing, recording, and transcription, not channel creation.

C: A setup policy is used to customize the Teams app experience for users, such as pinning specific apps to the navigation bar.

D: A permission policy controls which apps (e.g., third-party, custom) users are allowed to install or use within Teams.

1. Microsoft Learn. (2024). Manage Teams policies in Microsoft Teams. The documentation states

"You can use the global (Org-wide default) policy or create and assign custom policies. Users in your organization will get the global policy unless you create and assign a custom policy."

2. Microsoft Learn. (2024). Private channels in Microsoft Teams. Section: "Private channel creation". It specifies

"As an admin

you can use policies to control which users in your organization are allowed to create private channels... This is controlled by the Create private channels setting in the Teams policy."

In Microsoft Teams, third-party cloud storage services are integrated as apps. To restrict users to only Microsoft SharePoint and OneDrive for cloud storage, the administrator must block all other cloud storage provider apps. By navigating to "Manage apps" in the Teams admin center and setting the status of each non-Microsoft storage app to "Blocked," you prevent users from adding or using these services within their teams. SharePoint is the native, default storage and cannot be blocked, thus becoming the sole option.

1. Microsoft Learn. (2024). Manage your apps in the Microsoft Teams admin center. Section: "Allow and block apps". Retrieved from https://learn.microsoft.com/en-us/microsoftteams/manage-apps#allow-and-block-apps

2. Microsoft Learn. (2024). Overview of team and channel apps in Microsoft Teams. Section: "Files and tabs". Retrieved from https://learn.microsoft.com/en-us/microsoftteams/platform/concepts/teams-and-channels#files-and-tabs (This document explains how files from services like Dropbox can be added

which reinforces that they are managed as apps).

You need a minimum of one Auto Attendant and two Call Queues to meet the requirements.

A single Auto Attendant acts as the primary entry point for PSTN callers. It can be configured with call flows to manage both business hours and after-hours routing, including playing the required custom greeting outside of business hours. During business hours, this single Auto Attendant can use a menu prompt (e.g., "Press 1 for Sales, Press 2 for Marketing") to route calls.

Two separate Call Queues are required—one dedicated to the Sales department and one dedicated to the Marketing department—because each queue needs to distribute calls to its own distinct group of multiple users.

Microsoft Learn. "Plan for Teams auto attendants and call queues." Microsoft Teams Administration Documentation. Section: "How auto attendants and call queues work." Retrieved from:

Microsoft Learn. "Set up a Microsoft Teams auto attendant." Microsoft Teams Administration Documentation. Section: "Business hours call handling" and "After hours call handling." Retrieved from:

Microsoft Learn. "Create a Call Queue in Microsoft Teams." Microsoft Teams Administration Documentation. Section: "Assigning agents to a call queue." Retrieved from:

The Microsoft Teams admin center provides centralized control over organization-wide meeting settings. The "Meeting settings" page includes an "Email invitation" section specifically for customizing the default meeting template. The Footer field is the designated area for adding legal disclaimers, confidentiality notices, or other standard text that must appear at the bottom of all new Teams meeting invitations created by users within the organization. This ensures consistent messaging across all scheduled meetings.

Microsoft. (2024). Customize meeting invitations in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/customize-meeting-invitations. (See the section "Customize your meeting invitations" which details using the Footer field for disclaimers).

Recording and transcription capabilities in Teams are controlled by user-assigned policies. Meeting-related features are managed in Meeting policies, while one-to-one call features are in Calling policies. To meet the requirements, you must enable "Meeting recording" and "Transcription" in the appropriate meeting policy. For calls, you must enable "Cloud recording for calls" in the relevant calling policy. Enabling call recording also enables the transcription feature for those calls. Both sets of policies must be configured to provide the full required functionality.

Microsoft. (2024). Teams meeting recording. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/meeting-recording. (See the section "Turn on or turn off meeting recording

" which specifies using the -AllowCloudRecording setting in Meeting Policies.)

Microsoft. (2024). Configure transcription and captions for Teams meetings. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/meeting-transcription-captions. (See the section "Turn on or turn off transcription

" which points to the -AllowTranscription setting in Meeting Policies.)

Microsoft. (2024). Configure calling policies in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/teams-calling-policy. (See the "Calling policy settings" table

which describes the "Cloud recording for calls" setting.)

To restrict guest user invitations to a specific domain, you must configure an allow list in the Microsoft Entra external collaboration settings. This is the most direct and secure method to ensure that only users from trusted partner organizations, such as litwareinc.com, can be invited. Setting the policy to "Allow invitations to be sent only to the specified domains" creates a restrictive rule where any domain not explicitly listed is blocked by default, fulfilling the requirement precisely.

1. Allow or block invitations to B2B users from specific organizations. (2023

November 13). Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/entra/external-id/allow-block-b2b-invitations. See the section "Set up an allow or block list policy in the portal".

To enable dynamic emergency calling, which routes calls based on the user's real-time location, an administrator must configure an emergency calling policy. The "External location lookup mode" setting within this policy specifically controls this functionality. Enabling this setting allows Microsoft Teams to use the client's location information to determine the appropriate Public Safety Answering Point (PSAP) for an emergency call. The question specifies not to configure networks or locations, but only to enable the feature, which this policy change accomplishes.

1. Microsoft. (2024). Manage emergency calling policies in Microsoft Teams. Microsoft Learn. Retrieved from https://learn.microsoft.com/en-us/microsoftteams/manage-emergency-calling-policies. In the section "Create a custom emergency calling policy

" the setting "External location lookup mode" is described: "Turn this on to enable dynamic emergency calling. This setting controls whether a user's location is used to route emergency calls."

To restrict bandwidth based on a physical location identified by a network subnet, you must first define that location within the Teams admin center. This is done by creating a network site (Miami) and associating the specified IP subnet (10.10.10.0/24) with it. Next, you create a new Teams meeting policy to enforce the bandwidth restriction. In this policy, the "Media bit rate (Kbs)" setting is configured to 1,000 Kbps. This policy can then be assigned to users in the Miami office to apply the bandwidth limit when they are on the corporate network.

Microsoft Learn. (2024). Network settings for cloud voice features in Microsoft Teams. Under the section "Network sites

" it explains how to define sites and associate them with IP subnets.

Microsoft Learn. (2024). Meeting policy settings for audio & video. The table under "Audio & video" describes the Media bit rate (Kbs) setting

stating it "determines the average media bit rate for audio

video

and video-based app sharing transmissions in calls and meetings for the user."

Live events are explicitly designed for large-scale broadcasts (accommodating 1,000 to 10,000+ participants). The ability for presenters to record these broadcasts is governed by Live event policies ("Who can record an event"). Allowing anonymous users to join standard Teams meetings is a tenant-wide configuration managed under Meeting settings ("Anonymous users can join a meeting"). Finally, restricting how users share content—such as preventing them from sharing their entire screen and limiting them to specific applications—is a per-user control configured within Meeting policies using the "Screen sharing mode" setting.

Microsoft Learn: Manage live event policies in Microsoft Teams. Section: "Create or modify a live event policy" (Details recording settings for large-scale live events).

Microsoft Learn: Manage meeting settings in Microsoft Teams. Section: "Participants" (Details organization-wide anonymous join settings).

Microsoft Learn: Manage meeting policies in Microsoft Teams. Section: "Content sharing - Screen sharing mode" (Details configurations for Entire Screen, Single Application, or Disabled).