- A
Assign Reader to the compliance analyst's user account at each resource group.
Why wrong: This would work only for the resource groups you remember to configure, and it does not scale well.
- B
Assign Reader to the Entra ID group at the management group scope.
This is the best choice because role assignments inherit from management groups down to subscriptions, resource groups, and resources. By assigning Reader to the Entra ID group at the management group level, every current and future production subscription under that hierarchy will inherit read-only access. Using the group also makes access easier to manage when analysts join or leave the team.
- C
Assign Reader to one production subscription and rely on inheritance to cover the others.
Why wrong: A subscription-scope assignment applies only to that subscription, not all subscriptions under the management group.
- D
Assign Reader directly to each resource because resource-level assignments always override broader scopes.
Why wrong: Resource-level assignments do not automatically cover every other resource, and they create unnecessary administrative overhead.
Quick Answer
The answer is to assign the Reader role to the Entra ID group at the management group scope. This is correct because Azure RBAC inheritance applies downward through the hierarchy: any role assigned at a management group is automatically inherited by all child subscriptions and their resources, both current and future. By placing the role on the management group that contains all production subscriptions, the compliance analyst gains read-only visibility across every resource without the ability to make changes. On the AZ-104 exam, this scenario tests your understanding of Azure governance and role-based access control inheritance, with a common trap being assigning the role at the subscription level instead—which would miss future subscriptions added to the management group. A helpful memory tip is to think of the management group as the “umbrella” that covers all subscriptions beneath it, so assign roles there for blanket, future-proof permissions.
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 company uses one management group for all production subscriptions. A compliance analyst is a member of an Entra ID group and must view every current and future resource in all production subscriptions, but must not make any changes. Where should you assign the Reader role?
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
Assign Reader to the Entra ID group at the management group scope.
Assigning the Reader role to the Entra ID group at the management group scope ensures that all current and future resources in all production subscriptions inherit the role via Azure RBAC inheritance. This meets the requirement to view every resource without making changes, as the management group encompasses all production subscriptions and the group membership automatically grants permissions to the compliance analyst.
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.
- ✗
Assign Reader to the compliance analyst's user account at each resource group.
Why it's wrong here
This would work only for the resource groups you remember to configure, and it does not scale well.
- ✓
Assign Reader to the Entra ID group at the management group scope.
Why this is correct
This is the best choice because role assignments inherit from management groups down to subscriptions, resource groups, and resources. By assigning Reader to the Entra ID group at the management group level, every current and future production subscription under that hierarchy will inherit read-only access. Using the group also makes access easier to manage when analysts join or leave the team.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign Reader to one production subscription and rely on inheritance to cover the others.
Why it's wrong here
A subscription-scope assignment applies only to that subscription, not all subscriptions under the management group.
- ✗
Assign Reader directly to each resource because resource-level assignments always override broader scopes.
Why it's wrong here
Resource-level assignments do not automatically cover every other resource, and they create unnecessary administrative overhead.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume they must assign roles at the subscription or resource group level, overlooking the management group scope which provides inheritance across multiple subscriptions and future resources without manual intervention.
Detailed technical explanation
How to think about this question
Azure RBAC assignments are inherited from parent scopes (management group, subscription, resource group) to child scopes, but not across sibling scopes like separate subscriptions. Assigning at the management group scope leverages Azure Resource Manager's hierarchical governance, where the Reader role grants read-only access to all resources, including future ones, as long as the Entra ID group remains a member. This approach also supports dynamic group membership via Entra ID dynamic groups, automatically granting or revoking access as users join or leave the group.
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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Manage Azure Identities and Governance — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-104 question test?
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: Assign Reader to the Entra ID group at the management group scope. — Assigning the Reader role to the Entra ID group at the management group scope ensures that all current and future resources in all production subscriptions inherit the role via Azure RBAC inheritance. This meets the requirement to view every resource without making changes, as the management group encompasses all production subscriptions and the group membership automatically grants permissions to the compliance analyst.
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.
About these practice questions
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Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft 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 AZ-104 exam.
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