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 cloud operations team in the Corp business unit needs to read all Azure resources in every current and future subscription under the Corp management group to prepare monthly governance reports. They must not gain access to subscriptions that belong to other business units. What scope should the administrator use when assigning the Reader role?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Management group scope
The Reader role assigned at the management group scope grants read-only access to all subscriptions within that management group, including future subscriptions, because Azure RBAC permissions are inherited by child resources. This meets the requirement to cover all current and future subscriptions under the Corp management group while excluding subscriptions in other business units.
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.
✗
Subscription scope
Why it's wrong here
This limits access to only one subscription and will not cover future subscriptions automatically.
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Resource group scope
Why it's wrong here
This is too narrow because it would expose only resources in one resource group.
✓
Management group scope
Why this is correct
This scope lets the Reader role inherit to all subscriptions currently under the Corp management group and to new subscriptions moved there later.
Related concept
Read the scenario before looking for a memorised answer.
✗
Resource scope
Why it's wrong here
This is the narrowest scope, but it would only expose a single resource, not an entire business unit.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose subscription scope because they think each subscription needs a separate role assignment, failing to realize that management group scope provides inheritance to all current and future subscriptions under that management group.
Detailed technical explanation
How to think about this question
Azure RBAC supports role assignments at management group, subscription, resource group, and resource scopes, with permissions inherited downward through the hierarchy. Assigning the Reader role at the management group scope automatically applies to all child subscriptions and resource groups, including those created after the assignment, because Azure RBAC evaluates permissions at the time of access request by traversing the hierarchy. This design allows centralized governance without requiring manual updates for new subscriptions.
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: Management group scope — The Reader role assigned at the management group scope grants read-only access to all subscriptions within that management group, including future subscriptions, because Azure RBAC permissions are inherited by child resources. This meets the requirement to cover all current and future subscriptions under the Corp management group while excluding subscriptions in other business units.
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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