- A
Create a separate GCP organization for the business unit and configure its own resource location policy.
Why wrong: Creating a separate org is extreme and breaks unified billing, IAM, and governance. Org policy inheritance override achieves the same result within the existing structure.
- B
Set a `gcp.resourceLocations` policy on the business unit's folder with `inheritFromParent: false`, allowing `us-central1`, `us-east1`, and `europe-west1`.
Setting inheritFromParent: false and specifying the allowed locations at the folder level overrides the root org policy for that folder's projects only, without affecting other business units.
- C
Add a `europe-west1` exception to the root org policy using the `exceptions` field.
Why wrong: The `gcp.resourceLocations` constraint does not have an 'exceptions' field. Exceptions are granted by overriding the policy at a child resource node, not by a field in the parent policy.
- D
Remove the `gcp.resourceLocations` org policy from the root and apply it to each business unit's folder individually.
Why wrong: Removing the root policy and re-applying it per-folder is operationally expensive and risks gaps if new folders are created without the policy. Root policy with folder-level override is more maintainable.
Quick Answer
The correct answer is to set a `gcp.resourceLocations` policy on the business unit's folder with `inheritFromParent: false`, allowing `us-central1`, `us-east1`, and `europe-west1`. This works because Organization Policies follow a hierarchical inheritance model, where child resources like folders can override their parent’s constraints by explicitly disabling inheritance. By setting `inheritFromParent: false`, you break the default policy flow from the root level, allowing you to define a custom allowed location list for that specific folder without impacting other business units. On the Google Associate Cloud Engineer exam, this scenario tests your understanding of policy scoping and hierarchical overrides, often appearing as a distractor where candidates mistakenly try to add an exception at the project level or modify the root policy. A common trap is forgetting that `inheritFromParent` must be set to `false`; simply adding `europe-west1` to the folder without disabling inheritance would merge the lists, but the root restriction would still block it. Memory tip: think “folder override, inheritance toggled off” to recall that you must explicitly break the chain to grant a location exception.
Google ACE Setting up a cloud solution environment Practice Question
This ACE practice question tests your understanding of setting up a cloud solution environment. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Your organization policy at the root level sets `gcp.resourceLocations` to allow only `us-central1` and `us-east1`. A business unit needs to deploy resources in `europe-west1` for GDPR compliance. How can you grant this exception without affecting other business units?
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
Set a `gcp.resourceLocations` policy on the business unit's folder with `inheritFromParent: false`, allowing `us-central1`, `us-east1`, and `europe-west1`.
Option B is correct because Organization Policies support hierarchical inheritance, and setting `inheritFromParent: false` on the business unit's folder allows you to override the root-level `gcp.resourceLocations` constraint. This enables you to define a custom list of allowed locations (including `europe-west1`) for that specific folder without affecting other business units, as the policy is scoped to that folder only.
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.
- ✗
Create a separate GCP organization for the business unit and configure its own resource location policy.
Why it's wrong here
Creating a separate org is extreme and breaks unified billing, IAM, and governance. Org policy inheritance override achieves the same result within the existing structure.
- ✓
Set a `gcp.resourceLocations` policy on the business unit's folder with `inheritFromParent: false`, allowing `us-central1`, `us-east1`, and `europe-west1`.
Why this is correct
Setting inheritFromParent: false and specifying the allowed locations at the folder level overrides the root org policy for that folder's projects only, without affecting other business units.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Add a `europe-west1` exception to the root org policy using the `exceptions` field.
Why it's wrong here
The `gcp.resourceLocations` constraint does not have an 'exceptions' field. Exceptions are granted by overriding the policy at a child resource node, not by a field in the parent policy.
- ✗
Remove the `gcp.resourceLocations` org policy from the root and apply it to each business unit's folder individually.
Why it's wrong here
Removing the root policy and re-applying it per-folder is operationally expensive and risks gaps if new folders are created without the policy. Root policy with folder-level override is more maintainable.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Google Cloud often tests the misconception that you can add exceptions to list constraints like `gcp.resourceLocations` using an exceptions field, but in reality, list constraints only support allow or deny lists with inheritance override, not per-value exceptions.
Detailed technical explanation
How to think about this question
Under the hood, GCP Organization Policies use a hierarchical inheritance model where child nodes (folders, projects) inherit policies from their parent unless explicitly overridden with `inheritFromParent: false`. The `gcp.resourceLocations` constraint is a list constraint that defines allowed values; when you set `inheritFromParent: false`, you replace the entire list rather than merging it, which is why you must include the original allowed regions (`us-central1`, `us-east1`) along with the new one (`europe-west1`). In a real-world scenario, this approach is critical for GDPR compliance because it allows a specific business unit to deploy in a restricted region while maintaining global restrictions for all other units.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
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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FAQ
Questions learners often ask
What does this ACE question test?
Setting up a cloud solution environment — This question tests Setting up a cloud solution environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Set a `gcp.resourceLocations` policy on the business unit's folder with `inheritFromParent: false`, allowing `us-central1`, `us-east1`, and `europe-west1`. — Option B is correct because Organization Policies support hierarchical inheritance, and setting `inheritFromParent: false` on the business unit's folder allows you to override the root-level `gcp.resourceLocations` constraint. This enables you to define a custom list of allowed locations (including `europe-west1`) for that specific folder without affecting other business units, as the policy is scoped to that folder only.
What should I do if I get this ACE 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
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Last reviewed: Jun 30, 2026
This ACE 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 ACE exam.
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