- A
The new subscription is automatically in scope because the assignment is at the management group.
Management group assignments inherit to child subscriptions, including subscriptions added later.
- B
The initiative must be copied to every resource group in the new subscription before it takes effect.
Why wrong: A management group assignment already covers the child subscription and its resource groups.
- C
Existing noncompliant resources appear in Azure Policy compliance, but they are not changed until remediation runs.
Compliance reporting identifies drift, while remediation is the separate step that fixes resources already deployed.
- D
The initiative changes RBAC so users lose read access to the subscription.
Why wrong: Policy does not alter authorization to read or manage resources; RBAC handles access control.
- E
Compliance results are only visible in Activity Log, not in Azure Policy.
Why wrong: Azure Policy has its own compliance views; Activity Log is not the only reporting source.
Quick Answer
The answer is that Azure Policy assignments at a management group scope automatically apply to new subscriptions added under that group. This is because policy inheritance flows downward through the management group hierarchy: any policy or initiative assigned at the Corp management group is inherited by all child subscriptions, including those created or moved into Corp later, without requiring manual re-assignment. On the AZ-104 exam, this concept tests your understanding of Azure Policy scope inheritance and the difference between evaluation and remediation—a common trap is assuming new subscriptions are exempt or that noncompliant resources are automatically fixed. Remember that policy evaluation is automatic for new subscriptions, but remediation is not; you must trigger a remediation task to modify existing noncompliant resources. Memory tip: “Inheritance is automatic, remediation is not.”
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 policy initiative is assigned at the Corp management group to enforce allowed locations and required tags. A new subscription is added under Corp later. Which two statements are true? Select two.
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
The new subscription is automatically in scope because the assignment is at the management group.
Option A is correct because Azure Policy assignments at a management group scope are inherited by all child subscriptions, including new ones added later. When the Corp management group has the initiative assigned, any subscription under Corp automatically falls within the policy's evaluation scope without requiring manual re-assignment.
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.
- ✓
The new subscription is automatically in scope because the assignment is at the management group.
Why this is correct
Management group assignments inherit to child subscriptions, including subscriptions added later.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The initiative must be copied to every resource group in the new subscription before it takes effect.
Why it's wrong here
A management group assignment already covers the child subscription and its resource groups.
- ✓
Existing noncompliant resources appear in Azure Policy compliance, but they are not changed until remediation runs.
Why this is correct
Compliance reporting identifies drift, while remediation is the separate step that fixes resources already deployed.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The initiative changes RBAC so users lose read access to the subscription.
Why it's wrong here
Policy does not alter authorization to read or manage resources; RBAC handles access control.
- ✗
Compliance results are only visible in Activity Log, not in Azure Policy.
Why it's wrong here
Azure Policy has its own compliance views; Activity Log is not the only reporting source.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume new subscriptions or resources are not automatically covered by a management group policy assignment, or they confuse policy enforcement with RBAC changes, leading them to select options B or D.
Detailed technical explanation
How to think about this question
Azure Policy assignments at a management group scope use inheritance through the Azure Resource Manager hierarchy, where policies are applied to all nested subscriptions and resource groups. Remediation tasks are separate from evaluation; noncompliant resources are flagged in compliance reports but require a remediation task (e.g., using deployIfNotExists or modify effects) to automatically bring them into compliance. This design allows centralized governance while giving administrators control over when to enforce changes.
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.
- →
Manage Azure Identities and Governance — study guide chapter
Learn the concepts, then practise the questions
- →
Manage Azure Identities and Governance practice questions
Targeted practice on this topic area only
- →
All AZ-104 questions
1,170 questions across all exam domains
- →
AZ-104 study guide
Full concept coverage aligned to exam objectives
- →
AZ-104 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related AZ-104 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Manage Azure Identities and Governance practice questions
Practise AZ-104 questions linked to Manage Azure Identities and Governance.
Implement and Manage Storage practice questions
Practise AZ-104 questions linked to Implement and Manage Storage.
Deploy and Manage Azure Compute practice questions
Practise AZ-104 questions linked to Deploy and Manage Azure Compute.
Implement and Manage Virtual Networking practice questions
Practise AZ-104 questions linked to Implement and Manage Virtual Networking.
Monitor and Maintain Azure Resources practice questions
Practise AZ-104 questions linked to Monitor and Maintain Azure Resources.
AZ-104 Azure RBAC practice questions
Practise AZ-104 questions linked to AZ-104 Azure RBAC.
AZ-104 storage account practice questions
Practise AZ-104 questions linked to AZ-104 storage account.
AZ-104 virtual network practice questions
Practise AZ-104 questions linked to AZ-104 virtual network.
AZ-104 NSG practice questions
Practise AZ-104 questions linked to AZ-104 NSG.
AZ-104 Azure Monitor practice questions
Practise AZ-104 questions linked to AZ-104 Azure Monitor.
AZ-104 backup practice questions
Practise AZ-104 questions linked to AZ-104 backup.
AZ-104 managed identity practice questions
Practise AZ-104 questions linked to AZ-104 managed identity.
Practice this exam
Start a free AZ-104 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: The new subscription is automatically in scope because the assignment is at the management group. — Option A is correct because Azure Policy assignments at a management group scope are inherited by all child subscriptions, including new ones added later. When the Corp management group has the initiative assigned, any subscription under Corp automatically falls within the policy's evaluation scope without requiring manual re-assignment.
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
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 →
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.