- A
A Non-Disclosure Agreement (NDA) to prevent Google from disclosing the existence of the healthcare application
Why wrong: An NDA addresses confidentiality of business information, not HIPAA compliance. A BAA is the specific legal instrument required by HIPAA for processing PHI with a business associate like Google.
- B
A Business Associate Agreement (BAA), which is legally required by HIPAA before any covered entity can process Protected Health Information with a cloud provider
The BAA is non-negotiable for HIPAA compliance. Google Cloud offers a BAA that covers specific services for HIPAA workloads. Without a BAA in place, any PHI stored in Google Cloud constitutes a HIPAA violation — technical security controls alone do not satisfy the legal requirement.
- C
A Data Processing Agreement (DPA) as required under GDPR for European data subjects
Why wrong: A DPA addresses GDPR requirements for EU personal data. While a healthcare organization might also need a DPA if treating EU patients, the question specifically asks about HIPAA compliance, which requires a BAA.
- D
An ISO 27001 certificate issued by Google Cloud demonstrating information security compliance
Why wrong: ISO 27001 certification demonstrates Google's security management practices. While relevant to overall security posture, it is not the specific legal instrument required by HIPAA for processing PHI. The BAA is the required document.
Cloud Digital Leader Trust and security with Google Cloud Practice Question
This GCDL practice question tests your understanding of trust and security with google cloud. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An organization wants to use Google Cloud for processing healthcare data subject to HIPAA regulations in the United States. Which contractual document must the organization obtain from Google before storing Protected Health Information (PHI) in Google Cloud?
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
A Business Associate Agreement (BAA), which is legally required by HIPAA before any covered entity can process Protected Health Information with a cloud provider
Under HIPAA, a covered entity or business associate must obtain a Business Associate Agreement (BAA) from any cloud service provider that will create, receive, maintain, or transmit Protected Health Information (PHI). Google Cloud offers a BAA that contractually binds Google to comply with HIPAA Security and Privacy Rules, including safeguarding PHI and reporting breaches. Without a signed BAA, storing PHI in Google Cloud would violate HIPAA regulations.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
A Non-Disclosure Agreement (NDA) to prevent Google from disclosing the existence of the healthcare application
Why it's wrong here
An NDA addresses confidentiality of business information, not HIPAA compliance. A BAA is the specific legal instrument required by HIPAA for processing PHI with a business associate like Google.
- ✓
A Business Associate Agreement (BAA), which is legally required by HIPAA before any covered entity can process Protected Health Information with a cloud provider
Why this is correct
The BAA is non-negotiable for HIPAA compliance. Google Cloud offers a BAA that covers specific services for HIPAA workloads. Without a BAA in place, any PHI stored in Google Cloud constitutes a HIPAA violation — technical security controls alone do not satisfy the legal requirement.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A Data Processing Agreement (DPA) as required under GDPR for European data subjects
Why it's wrong here
A DPA addresses GDPR requirements for EU personal data. While a healthcare organization might also need a DPA if treating EU patients, the question specifically asks about HIPAA compliance, which requires a BAA.
- ✗
An ISO 27001 certificate issued by Google Cloud demonstrating information security compliance
Why it's wrong here
ISO 27001 certification demonstrates Google's security management practices. While relevant to overall security posture, it is not the specific legal instrument required by HIPAA for processing PHI. The BAA is the required document.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse a generic data protection document (like a DPA or NDA) with the HIPAA-specific BAA, or mistakenly believe that a security certification alone satisfies the contractual requirement for handling PHI.
Detailed technical explanation
How to think about this question
A BAA under HIPAA (45 CFR § 164.504(e)) must specify the permitted and required uses of PHI by the business associate, prohibit unauthorized uses, and require the business associate to report security incidents and breaches. Google Cloud’s BAA covers all services in its HIPAA-eligible list (e.g., Cloud Storage, BigQuery, Compute Engine) and requires the customer to configure encryption, access controls, and logging to maintain compliance. In a real-world scenario, if a healthcare organization stores PHI in Google Cloud without a BAA and a breach occurs, the organization faces HIPAA penalties, even if Google’s infrastructure is secure.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Trust and security with Google Cloud — study guide chapter
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FAQ
Questions learners often ask
What does this GCDL question test?
Trust and security with Google Cloud — This question tests Trust and security with Google Cloud — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A Business Associate Agreement (BAA), which is legally required by HIPAA before any covered entity can process Protected Health Information with a cloud provider — Under HIPAA, a covered entity or business associate must obtain a Business Associate Agreement (BAA) from any cloud service provider that will create, receive, maintain, or transmit Protected Health Information (PHI). Google Cloud offers a BAA that contractually binds Google to comply with HIPAA Security and Privacy Rules, including safeguarding PHI and reporting breaches. Without a signed BAA, storing PHI in Google Cloud would violate HIPAA regulations.
What should I do if I get this GCDL question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 11, 2026
This GCDL practice question is part of Courseiva's free Google Cloud 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 GCDL exam.
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