You have a Microsoft 365 E5 subscription that contains the resources shown in the following table. You create a sensitivity label named Label1. To which resource can you apply Label1?
Choose which users and groups see the labels. Labels can be published to any specific user or email-enabled security group, distribution group, or Microsoft 365 group (which can have dynamic membership) in Microsoft Entra I https://learn.microsoft.com/en-us/purview/sensitivity-labels
After investigation I would say that the right answer is E.
My argumentation, the exam question is: To which resource can you apply Labe1?
According to Microsoft's documentation it's possible to apply a sensitivity label to Distribution group/list if it's upgraded to a M365 group, see details in > https://learn.microsoft.com/en-us/exchange/recipients-in-exchange-online/manage-distribution-groups/upgrade-distribution-lists.
Choose which users and groups see the labels. Labels can be published to any specific user or email-enabled security group, distribution group, or Microsoft 365 group (which can have dynamic membership) in Microsoft Entra ID.
https://learn.microsoft.com/en-us/purview/sensitivity-labels#what-label-policies-can-do
The correct answer is: A. Group1 only
Explanation:
Sensitivity labels in Microsoft 365 can be used to classify and protect content such as:
Emails
Documents
Microsoft 365 groups
Teams
SharePoint sites
However, only Microsoft 365 groups (like Group1) support the application of sensitivity labels directly to the group itself — this controls privacy, external access, and unmanaged device settings.
Breakdown:
Group1 (Microsoft 365 group): ✅ Supports sensitivity labels
Group2 (Distribution group): ❌ Not supported — classic distribution lists don't support sensitivity labeling.
Site1 (SharePoint site): ❌ Direct labeling of standalone SharePoint sites isn’t supported unless they are connected to a Microsoft 365 group.
Co-pilot says: You cannot apply sensitivity labels directly to distribution groups. Distribution groups are typically used for email distribution lists and do not have the same sensitivity label features as other Microsoft 365 resources.
However, you can apply sensitivity labels to Microsoft 365 groups. When you label a Microsoft 365 group, the label and its associated policies apply to the group and all associated resources, including Microsoft Teams, SharePoint sites, and email conversations.
The answer is not listed, it should be "according to Copilot" site1 and MS 365 group.
Since there is no A & C answer that is correct, I vote for E. (label1 can be APPLIED to Group1 (Microsoft 365 Group) and Site1 (SharePoint site).)
Steps:
-create
-publish: (who sees the label): Choose which users and groups SEE the labels. Labels can be published to any specific user or email-enabled security group, distribution group, or Microsoft 365 group (which can have dynamic membership) in Microsoft Entra ID.
https://learn.microsoft.com/en-us/purview/sensitivity-labels#what-label-policies-can-do
-apply (what the label applies to): You're now ready to APPLY the sensitivity label or labels to the following containers:
Microsoft 365 group in Microsoft Entra ID
Microsoft Teams team site
Microsoft 365 group in Outlook on the web
SharePoint site
https://learn.microsoft.com/en-us/purview/sensitivity-labels-teams-groups-sites#how-to-apply-sensitivity-labels-to-containers
None of the options are correct, should be Group 1 and Site 1 only.
Not Supported: Sensitivity labels cannot be applied directly to distribution groups. This is because distribution groups are used primarily for email distribution and lack the advanced data-sharing and security features that Microsoft 365 Groups support.
Key Differences:
Feature Microsoft 365 Groups Distribution Groups
Sensitivity Labels ✅ Supported ❌ Not Supported
Privacy Options Public or Private Public (default behavior)
External Sharing Controls ✅ Supported (via labels) ❌ Not Available
Collaboration Tools Teams, SharePoint, Planner, etc. ❌ Email Only
If you need to apply governance to a distribution group, you might consider transitioning it to a Microsoft 365 Group for advanced security and collaboration options.
365 Group (Group1): Sensitivity labels can be applied to Microsoft 365 Groups, including the associated resources such as Outlook mailboxes, SharePoint sites, and Teams.
Distribution Group (Group2): Sensitivity labels can also be applied to distribution groups, although there might be some limitations depending on the type of distribution group (security or mail-enabled).
SharePoint Site (Site1): Sensitivity labels can be applied to SharePoint sites, which allows for protection of the data within the site, including documents and list items.
i would think its group 1 and site 1 only but thats not an option. labels can only be applied to microosft 365 groups not distribution groups. https://learn.microsoft.com/en-us/purview/sensitivity-labels-teams-groups-sites#how-to-configure-groups-and-site-settings
also here under troubleshooting it says the group has to be a m365 group https://learn.microsoft.com/en-us/entra/identity/users/groups-assign-sensitivity-labels?tabs=microsoft#sensitivity-labels-arent-available-for-assignment-on-a-group
All of this is wrong, a label cannot be applied to a group. The documentation from previous comment only indicates that a label POLICY can be applied to a group of users. That means WHO can apply a label, NOT ON WHAT.
READ THE QUESTION - states APPLY label1, not SEE Label1. Distribution groups can SEE the labels, but the labels cannot be applied to them! From this reference: https://learn.microsoft.com/en-us/purview/sensitivity-labels This is what is stated: Choose which users and groups see the labels. Labels can be published to any specific user or email-enabled security group, distribution group, or Microsoft 365 group (which can have dynamic membership) in Microsoft Entra ID. It clearly states SEE labels! This is the reference that explains it:https://learn.microsoft.com/en-us/purview/sensitivity-labels-teams-groups-sites
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