MB-901 MICROSOFT DYNAMICS 365 FUNDAMENTALS PRACTICE EXAM
Comprehensive Question Bank with Verified Answers & Rationales
Latest Update 2026/2027 | Graded A+ | 150 Questions
TABLE OF CONTENTS
Section Topic Weight Questions
Identify Microsoft Platform Components for
Section 1 30-35% Q1-Q45
Dynamics 365
Describe Artificial Intelligence and Mixed Reality
Section 2 10-15% Q46-Q65
in Dynamics 365
Describe Model-Driven Apps (Customer
Section 3 25-30% Q66-Q110
Engagement Apps)
Section 4 Describe Finance and Operations Apps 25-30% Q111-Q150
SECTION 1: IDENTIFY MICROSOFT PLATFORM COMPONENTS FOR DYNAMICS 365 (30-35%)
🟢 Q1. A multinational corporation is evaluating Dynamics 365 cloud deployment. The IT director wants to understand how Dynamics 365 handles data
security. Which statement best describes the data security benefits provided by Dynamics 365 cloud deployment?
A. Data is stored locally on each user's device to ensure complete control
🔴🔴 B. Data is encrypted at rest and in transit, with role-based access controls
C. Data security is the sole responsibility of the customer organization
D. Data is accessible to all users without any restrictions
Answer: B
Rationale: Dynamics 365 provides enterprise-grade cloud security including encryption of data both at rest and in transit, combined with role-based
security controls. Option A is incorrect because cloud data is not stored locally on user devices. Option C is incorrect because Microsoft shares security
responsibility through a shared responsibility model. Option D is incorrect because access is restricted through security roles.
🟢 Q2. A company needs to implement Single Sign-On (SSO) for its Dynamics 365 environment. Which Azure feature should be configured to enable SSO?
A. Azure Data Factory
🔴🔴 B. Azure Active Directory
C. Azure Logic Apps
D. Azure Kubernetes Service
Answer: B
Rationale: Azure Active Directory (Azure AD) provides identity and access management services including Single Sign-On capabilities for Dynamics 365.
Azure Data Factory is for data integration, Azure Logic Apps is for workflow automation, and Azure Kubernetes Service is for container orchestration.
🟢 Q3. An organization wants to implement Multi-Factor Authentication (MFA) for all Dynamics 365 users. Which tool is specifically designed for MFA
implementation with Microsoft services?
A. Microsoft Teams
🔴🔴 B. Microsoft Authenticator app
C. Microsoft SharePoint
D. Microsoft OneDrive
,Answer: B
Rationale: The Microsoft Authenticator app is specifically designed to provide Multi-Factor Authentication capabilities. Microsoft Teams, SharePoint, and
OneDrive are productivity applications that do not provide MFA functionality directly.
🟢 Q4. A company is concerned about preventing sensitive data from being shared outside the organization through Power Apps. Which feature should
they implement?
🔴🔴 A. Data Loss Prevention (DLP) policies
B. Azure Firewall
C. Network Security Groups
D. Application Gateway
Answer: A
Rationale: Data Loss Prevention (DLP) policies help prevent sensitive data from being shared outside the organization. Azure Firewall, Network Security
Groups, and Application Gateway are network security tools that do not specifically address data sharing through Power Apps.
🟢 Q5. Which Azure service provides the underlying data storage and management capabilities for Dynamics 365?
A. Azure SQL Database
🔴🔴 B. Common Data Service (now Dataverse)
C. Azure Cosmos DB
D. Azure Blob Storage
Answer: B
Rationale: Common Data Service (now Microsoft Dataverse) provides the underlying data storage and management capabilities for Dynamics 365. It
enables data consistency, extensibility, and interoperability across Dynamics 365 applications.
🟢 Q6. A company uses one system for sales and one system for order management. When quotes are accepted in the sales system, the customer and
order must be reentered into the order management system. What is a primary benefit of using the Common Data Model?
A. It eliminates the need for data encryption
🔴🔴 B. It enables data consistency and reduces redundant data entry across systems
C. It replaces all existing business applications
D. It eliminates the need for user training
Answer: B
Rationale: The Common Data Model enables data consistency and interoperability across applications, eliminating redundant data entry. It provides a
shared data language for business and analytical applications to use.
🟢 Q7. Which of the following is a key benefit of role-based security in Dynamics 365?
A. All users have access to all data by default
🔴🔴 B. Users only have access to the data and functions necessary for their job role
C. Security is managed exclusively through Azure Firewall
D. Role-based security eliminates the need for authentication
Answer: B
Rationale: Role-based security ensures users only have access to the data and functions necessary for their job role. This follows the principle of least
privilege and streamlines the user experience.
🟢 Q8. Which integration capability allows Dynamics 365 to connect with third-party applications?
A. Only Microsoft products can integrate with Dynamics 365
B. Integration is limited to on-premises systems only
🔴🔴 C. Dynamics 365 supports integration with third-party apps through APIs and connectors
D. Third-party integration requires custom coding in every scenario
Answer: C
Rationale: Dynamics 365 supports integration with third-party applications through APIs, connectors, and custom integration capabilities.
, 🟢 Q9. What is the purpose of Life Cycle Services (LCS) in the Dynamics 365 ecosystem?
A. To replace all Dynamics 365 applications
B. To provide customer support for end users
🔴🔴 C. To manage the implementation, upgrade, and maintenance of Dynamics 365 Finance and Operations apps
D. To design user interfaces for Power Apps
Answer: C
Rationale: Life Cycle Services (LCS) is a Microsoft-provided cloud-based collaboration workspace that helps customers and partners manage the
implementation, upgrade, and maintenance of Dynamics 365 Finance and Operations apps.
🟢 Q10. Which Power Platform component allows users to create automated workflows between applications and services?
A. Power Apps
🔴🔴 B. Power Automate
C. Power BI
D. Power Virtual Agents
Answer: B
Rationale: Power Automate allows users to create automated workflows between applications and services. Power Apps is for building applications, Power
BI is for analytics, and Power Virtual Agents is for creating chatbots.
🟢 Q11. A company wants to ensure compliance with GDPR when using Dynamics 365. Which capability helps with this requirement?
A. Data is stored in a single geographic location only
B. All data is publicly accessible for transparency
🔴🔴 C. Dynamics 365 includes industry-standard certifications including GDPR compliance features
D. GDPR compliance is automatically guaranteed without any configuration
Answer: C
Rationale: Dynamics 365 includes industry-standard certifications including GDPR compliance features. Organizations must still configure appropriate
controls and policies.
🟢 Q12. What is the primary purpose of Azure Active Directory in the context of Dynamics 365?
A. To store all Dynamics 365 application data
B. To replace the need for Dynamics 365 security roles
🔴🔴 C. To provide identity management, authentication, and authorization services
D. To host Dynamics 365 application servers
Answer: C
Rationale: Azure Active Directory provides identity management, authentication, and authorization services for Dynamics 365. It enables features like SSO
and MFA.
🟢 Q13. Which of the following describes a key benefit of the Microsoft Cloud for Dynamics 365?
A. Limited scalability to control costs
B. Data is stored exclusively on customer premises
🔴🔴 C. Global availability with enterprise-grade security and compliance
D. Requires no internet connectivity for operation
Answer: C
Rationale: The Microsoft Cloud provides global availability with enterprise-grade security and compliance. It offers scalability, reliability, and advanced
security features.
🟢 Q14. A company wants to build a custom mobile app that connects to Dynamics 365 data. Which Power Platform tool should they use?
🔴🔴 A. Power Apps
B. Power Automate
C. Power BI
D. Power Virtual Agents
Comprehensive Question Bank with Verified Answers & Rationales
Latest Update 2026/2027 | Graded A+ | 150 Questions
TABLE OF CONTENTS
Section Topic Weight Questions
Identify Microsoft Platform Components for
Section 1 30-35% Q1-Q45
Dynamics 365
Describe Artificial Intelligence and Mixed Reality
Section 2 10-15% Q46-Q65
in Dynamics 365
Describe Model-Driven Apps (Customer
Section 3 25-30% Q66-Q110
Engagement Apps)
Section 4 Describe Finance and Operations Apps 25-30% Q111-Q150
SECTION 1: IDENTIFY MICROSOFT PLATFORM COMPONENTS FOR DYNAMICS 365 (30-35%)
🟢 Q1. A multinational corporation is evaluating Dynamics 365 cloud deployment. The IT director wants to understand how Dynamics 365 handles data
security. Which statement best describes the data security benefits provided by Dynamics 365 cloud deployment?
A. Data is stored locally on each user's device to ensure complete control
🔴🔴 B. Data is encrypted at rest and in transit, with role-based access controls
C. Data security is the sole responsibility of the customer organization
D. Data is accessible to all users without any restrictions
Answer: B
Rationale: Dynamics 365 provides enterprise-grade cloud security including encryption of data both at rest and in transit, combined with role-based
security controls. Option A is incorrect because cloud data is not stored locally on user devices. Option C is incorrect because Microsoft shares security
responsibility through a shared responsibility model. Option D is incorrect because access is restricted through security roles.
🟢 Q2. A company needs to implement Single Sign-On (SSO) for its Dynamics 365 environment. Which Azure feature should be configured to enable SSO?
A. Azure Data Factory
🔴🔴 B. Azure Active Directory
C. Azure Logic Apps
D. Azure Kubernetes Service
Answer: B
Rationale: Azure Active Directory (Azure AD) provides identity and access management services including Single Sign-On capabilities for Dynamics 365.
Azure Data Factory is for data integration, Azure Logic Apps is for workflow automation, and Azure Kubernetes Service is for container orchestration.
🟢 Q3. An organization wants to implement Multi-Factor Authentication (MFA) for all Dynamics 365 users. Which tool is specifically designed for MFA
implementation with Microsoft services?
A. Microsoft Teams
🔴🔴 B. Microsoft Authenticator app
C. Microsoft SharePoint
D. Microsoft OneDrive
,Answer: B
Rationale: The Microsoft Authenticator app is specifically designed to provide Multi-Factor Authentication capabilities. Microsoft Teams, SharePoint, and
OneDrive are productivity applications that do not provide MFA functionality directly.
🟢 Q4. A company is concerned about preventing sensitive data from being shared outside the organization through Power Apps. Which feature should
they implement?
🔴🔴 A. Data Loss Prevention (DLP) policies
B. Azure Firewall
C. Network Security Groups
D. Application Gateway
Answer: A
Rationale: Data Loss Prevention (DLP) policies help prevent sensitive data from being shared outside the organization. Azure Firewall, Network Security
Groups, and Application Gateway are network security tools that do not specifically address data sharing through Power Apps.
🟢 Q5. Which Azure service provides the underlying data storage and management capabilities for Dynamics 365?
A. Azure SQL Database
🔴🔴 B. Common Data Service (now Dataverse)
C. Azure Cosmos DB
D. Azure Blob Storage
Answer: B
Rationale: Common Data Service (now Microsoft Dataverse) provides the underlying data storage and management capabilities for Dynamics 365. It
enables data consistency, extensibility, and interoperability across Dynamics 365 applications.
🟢 Q6. A company uses one system for sales and one system for order management. When quotes are accepted in the sales system, the customer and
order must be reentered into the order management system. What is a primary benefit of using the Common Data Model?
A. It eliminates the need for data encryption
🔴🔴 B. It enables data consistency and reduces redundant data entry across systems
C. It replaces all existing business applications
D. It eliminates the need for user training
Answer: B
Rationale: The Common Data Model enables data consistency and interoperability across applications, eliminating redundant data entry. It provides a
shared data language for business and analytical applications to use.
🟢 Q7. Which of the following is a key benefit of role-based security in Dynamics 365?
A. All users have access to all data by default
🔴🔴 B. Users only have access to the data and functions necessary for their job role
C. Security is managed exclusively through Azure Firewall
D. Role-based security eliminates the need for authentication
Answer: B
Rationale: Role-based security ensures users only have access to the data and functions necessary for their job role. This follows the principle of least
privilege and streamlines the user experience.
🟢 Q8. Which integration capability allows Dynamics 365 to connect with third-party applications?
A. Only Microsoft products can integrate with Dynamics 365
B. Integration is limited to on-premises systems only
🔴🔴 C. Dynamics 365 supports integration with third-party apps through APIs and connectors
D. Third-party integration requires custom coding in every scenario
Answer: C
Rationale: Dynamics 365 supports integration with third-party applications through APIs, connectors, and custom integration capabilities.
, 🟢 Q9. What is the purpose of Life Cycle Services (LCS) in the Dynamics 365 ecosystem?
A. To replace all Dynamics 365 applications
B. To provide customer support for end users
🔴🔴 C. To manage the implementation, upgrade, and maintenance of Dynamics 365 Finance and Operations apps
D. To design user interfaces for Power Apps
Answer: C
Rationale: Life Cycle Services (LCS) is a Microsoft-provided cloud-based collaboration workspace that helps customers and partners manage the
implementation, upgrade, and maintenance of Dynamics 365 Finance and Operations apps.
🟢 Q10. Which Power Platform component allows users to create automated workflows between applications and services?
A. Power Apps
🔴🔴 B. Power Automate
C. Power BI
D. Power Virtual Agents
Answer: B
Rationale: Power Automate allows users to create automated workflows between applications and services. Power Apps is for building applications, Power
BI is for analytics, and Power Virtual Agents is for creating chatbots.
🟢 Q11. A company wants to ensure compliance with GDPR when using Dynamics 365. Which capability helps with this requirement?
A. Data is stored in a single geographic location only
B. All data is publicly accessible for transparency
🔴🔴 C. Dynamics 365 includes industry-standard certifications including GDPR compliance features
D. GDPR compliance is automatically guaranteed without any configuration
Answer: C
Rationale: Dynamics 365 includes industry-standard certifications including GDPR compliance features. Organizations must still configure appropriate
controls and policies.
🟢 Q12. What is the primary purpose of Azure Active Directory in the context of Dynamics 365?
A. To store all Dynamics 365 application data
B. To replace the need for Dynamics 365 security roles
🔴🔴 C. To provide identity management, authentication, and authorization services
D. To host Dynamics 365 application servers
Answer: C
Rationale: Azure Active Directory provides identity management, authentication, and authorization services for Dynamics 365. It enables features like SSO
and MFA.
🟢 Q13. Which of the following describes a key benefit of the Microsoft Cloud for Dynamics 365?
A. Limited scalability to control costs
B. Data is stored exclusively on customer premises
🔴🔴 C. Global availability with enterprise-grade security and compliance
D. Requires no internet connectivity for operation
Answer: C
Rationale: The Microsoft Cloud provides global availability with enterprise-grade security and compliance. It offers scalability, reliability, and advanced
security features.
🟢 Q14. A company wants to build a custom mobile app that connects to Dynamics 365 data. Which Power Platform tool should they use?
🔴🔴 A. Power Apps
B. Power Automate
C. Power BI
D. Power Virtual Agents
