AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. 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.
A central audit group must have Reader access for every current and future subscription in the company hierarchy. You want one assignment that will apply broadly as new subscriptions are added. Where should the role be assigned?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
At the management group that contains the subscriptions
Assigning the Reader role at the management group level ensures that the central audit group inherits the role to all current and future subscriptions within that management group hierarchy. This is the most efficient and scalable approach because Azure RBAC assignments on a management group are inherited by all child subscriptions and resource groups, eliminating the need to manually update permissions as new subscriptions are added.
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.
✓
At the management group that contains the subscriptions
Why this is correct
A management group assignment flows down to current and future subscriptions under it.
Related concept
Read the scenario before looking for a memorised answer.
✗
At one resource group in each subscription
Why it's wrong here
This would require many separate assignments and would miss resources outside those groups.
✗
At a single resource
Why it's wrong here
A single resource scope is too narrow to cover multiple subscriptions.
✗
At the tenant root only for one application
Why it's wrong here
Tenant root is broader than necessary and the wording about one application is unrelated.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think assigning at the tenant root is possible for subscription-level access, but Azure does not support role assignments at the tenant root scope for resource management; the correct hierarchical scope for broad inheritance is the management group.
Detailed technical explanation
How to think about this question
Azure RBAC assignments are inherited through the management group hierarchy, which can be up to six levels deep. When a role is assigned at a management group, it applies to all subscriptions and resource groups under that management group, including any new subscriptions added later. This is governed by Azure Resource Manager's hierarchical scope model, where permissions flow downward but not upward or laterally. In a real-world scenario, a central audit team can be granted Reader access at the root management group to cover the entire enterprise, ensuring compliance without per-subscription management.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: At the management group that contains the subscriptions — Assigning the Reader role at the management group level ensures that the central audit group inherits the role to all current and future subscriptions within that management group hierarchy. This is the most efficient and scalable approach because Azure RBAC assignments on a management group are inherited by all child subscriptions and resource groups, eliminating the need to manually update permissions as new subscriptions are added.
What should I do if I get this AZ-104 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.
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Question Discussion
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