Explanation
An alert policy consists of a set of rules and conditions that define the user or admin activity that generates an alert, a list of users who trigger the alert if they perform the activity, and a threshold that defines how many times the activity has to occur before an alert is triggered.
In this question, we would use the "Malware detected in file" activity in the alert settings then configure the threshold (5 detections) and the time window (10 minutes).
The ability to configure alert policies based on a threshold or based on unusual activity requires Advanced Threat Protection (ATP).
Reference:
https://docs.microsoft.com/en-us/microsoft-365/compliance/alert-policies

Explanation
Group-based licensing currently does not support groups that contain other groups (nested groups). If you apply a license to a nested group, only the immediate first-level user members of the group have the licenses applied. Therefore, User2 will not be assigned a license.
When Azure AD assigns group licenses, any users without a specified usage location inherit the location of the directory. Therefore, User3 will be assigned a license and his usage location will be set to the location of the directory.
Reference:
https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-groups-assign
https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-group-advanced

Explanation
The Password protection settings allows you to specify a banned password list of phrases that users cannot use as part of their passwords.
References:
https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-password-ban-bad-on-premisesope
https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-password-ban-bad-configure
https://docs.microsoft.com/en-us/azure/active-directory/authentication/concept-password-ban-bad#custombanned

Explanation

Fabrikam plans to implement a Microsoft 365 Enterprise subscription and move all email and shared documents to the subscription.
All users must be able to exchange email messages successfully during Project1 by using their current email address.
After the planned migration to Microsoft 365, all users must continue to authenticate to their mailbox and to SharePoint sites by using their UPN.
This configuration requires a hybrid Exchange configuration during the pilot phase. This means that you will have mailboxes hosted in Exchange Online and mailboxes hosted in Exchange on-premise.
The first steps to configure Exchange hybrid are to Create the Azure AD tenant, add the Fabrikam.com domain as a custom domain, then configure directory synchronization to replicate the on-prem Active Directory user accounts to Azure Active Directory.
Reference:
https://docs.microsoft.com/en-us/exchange/exchange-hybrid
Topic 1, Fabrikam, Inc
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answer and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. When you are ready to answer a question, click the Question button to return to the question.
Overview
Fabrikam, Inc. is an electronics company that produces consumer products. Fabrikam has 10,000 employees worldwide.
Fabrikam has a main office in London and branch offices in major cities in Europe, Asia, and the United States.
Existing Environment
Active Directory Environment
The network contains an Active Directory forest named fabrikam.com. The forest contains all the identities used for user and computer authentication.
Each department is represented by a top-level organizational unit (OU) that contains several child OUs for user accounts and computer accounts.
All users authenticate to on-premises applications by signing in to their device by using a UPN format of [email protected].
Fabrikam does NOT plan to implement identity federation.
Network Infrastructure
Each office has a high-speed connection to the Internet.
Each office contains two domain controllers. All domain controllers are configured as a DNS server.
The public zone for fabrikam.com is managed by an external DNS server.
All users connect to an on-premises Microsoft Exchange Server 2016 organization. The users access their email by using Outlook Anywhere, Outlook on the web, or the Microsoft Outlook app for iOS. All the Exchange servers have the latest cumulative updates installed.
All shared company documents are stored on a Microsoft SharePoint Server farm.
Requirements
Planned Changes
Fabrikam plans to implement a Microsoft 365 Enterprise subscription and move all email and shared documents to the subscription.
Fabrikam plans to implement two pilot projects:
* Project1: During Project1, the mailboxes of 100 users in the sales department will be moved to Microsoft 365.
* Project2: After the successful completion of Project1, Microsoft Teams & Skype for Business will be enabled in Microsoft 365 for the sales department users.
Fabrikam plans to create a group named UserLicenses that will manage the allocation of all Microsoft 365 bulk licenses.
Technical Requirements
Fabrikam identifies the following technical requirements:
* All users must be able to exchange email messages successfully during Project1 by using their current email address.
* Users must be able to authenticate to cloud services if Active Directory becomes unavailable.
* A user named User1 must be able to view all DLP reports from the Microsoft 365 admin center.
* Microsoft Office 365 ProPlus applications must be installed from a network share only.
* Disruptions to email address must be minimized.
Application Requirements
Fabrikam identifies the following application requirements:
* An on-premises web application named App1 must allow users to complete their expense reports online.
* The installation of feature updates for Office 365 ProPlus must be minimized.
Security Requirements
Fabrikam identifies the following security requirements:
* After the planned migration to Microsoft 365, all users must continue to authenticate to their mailbox and to SharePoint sites by using their UPN.
* The memberships of UserLicenses must be validated monthly. Unused user accounts must be removed from the group automatically.
* After the planned migration to Microsoft 365, all users must be signed in to on-premises and cloud-based applications automatically.
* The principle of least privilege must be used.