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Business Principles OF Cloud EnvironmentshardMultiple ChoiceObjective-mapped

CLO-002 Business Principles OF Cloud Environments Practice Question

A multinational corporation is evaluating cloud vendors for compliance with international data residency laws. Which selection criterion is most critical to ensure legal compliance during vendor selection?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Geographic availability of data centers

Data sovereignty/residency laws dictate that data must stay within physical or jurisdictional borders. Verifying the cloud provider's regional data center footprint is essential.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Geographic availability of data centers

    Why this is correct

    This allows the business to choose regions that comply with specific data residency regulations.

  • Vendor market share in the industry

    Why it's wrong here

    Market share does not indicate regulatory compliance capability.

  • Availability of proprietary development tools

    Why it's wrong here

    Development tools are irrelevant to legal data residency compliance.

  • Cost of egress fees

    Why it's wrong here

    Egress fees are a financial concern, not a legal compliance requirement.

About these practice questions

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JA

Written and reviewed by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

Last reviewed August 2026 · checked against the official CompTIA exam blueprint

This CLO-002 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLO-002 exam.