- A
Assign the Azure role directly to each contractor user account.
Why wrong: Direct user assignments work, but every membership change requires another role change. That creates more administrative effort and a higher risk of missed access removal.
- B
Create a Microsoft Entra security group, add the contractors, and assign the Azure role to the group.
A security group is the best delegation target because membership can change without editing the RBAC assignment. The role remains stable, while adding or removing users from the group immediately changes who receives the permissions. This is the standard least-administration approach for a team whose membership changes often.
- C
Use a Microsoft 365 group and assign the Azure role to it.
Why wrong: Microsoft 365 groups are mainly for collaboration scenarios. They are not the preferred choice for Azure access delegation when a security group is the clearer, more appropriate administrative construct.
- D
Create a management group for the contractors and assign the role there.
Why wrong: Management groups are used to organize subscriptions and apply governance at scale. They are not meant to represent a temporary project team or manage individual contractor membership.
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 project team adds and removes contractors every few weeks. The team needs Azure access to follow membership changes without updating role assignments for each person. What should the administrator use to delegate the access?
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
Create a Microsoft Entra security group, add the contractors, and assign the Azure role to the group.
Option B is correct because assigning an Azure role to a Microsoft Entra security group allows the administrator to manage access by simply adding or removing contractors from the group, without needing to update role assignments for each individual. This leverages Azure RBAC's support for group-based assignments, which automatically propagate role permissions to new members and revoke them from removed members.
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 the Azure role directly to each contractor user account.
Why it's wrong here
Direct user assignments work, but every membership change requires another role change. That creates more administrative effort and a higher risk of missed access removal.
- ✓
Create a Microsoft Entra security group, add the contractors, and assign the Azure role to the group.
Why this is correct
A security group is the best delegation target because membership can change without editing the RBAC assignment. The role remains stable, while adding or removing users from the group immediately changes who receives the permissions. This is the standard least-administration approach for a team whose membership changes often.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use a Microsoft 365 group and assign the Azure role to it.
Why it's wrong here
Microsoft 365 groups are mainly for collaboration scenarios. They are not the preferred choice for Azure access delegation when a security group is the clearer, more appropriate administrative construct.
- ✗
Create a management group for the contractors and assign the role there.
Why it's wrong here
Management groups are used to organize subscriptions and apply governance at scale. They are not meant to represent a temporary project team or manage individual contractor membership.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates might confuse Microsoft 365 groups (which are primarily for collaboration and may not support all Azure RBAC roles) with security groups, or incorrectly think that management groups are appropriate for individual user access delegation.
Trap categories for this question
Scenario analysis trap
Microsoft 365 groups are mainly for collaboration scenarios. They are not the preferred choice for Azure access delegation when a security group is the clearer, more appropriate administrative construct.
Detailed technical explanation
How to think about this question
Azure RBAC supports role assignments to security groups, which are evaluated at runtime to determine effective permissions. When a user is added to or removed from a group, the change propagates within minutes (typically up to 5 minutes) due to Azure AD replication, making this approach suitable for dynamic teams. In real-world scenarios, this pattern is commonly used with Azure AD Privileged Identity Management (PIM) for just-in-time access, where group membership can be activated temporarily.
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.
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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: Create a Microsoft Entra security group, add the contractors, and assign the Azure role to the group. — Option B is correct because assigning an Azure role to a Microsoft Entra security group allows the administrator to manage access by simply adding or removing contractors from the group, without needing to update role assignments for each individual. This leverages Azure RBAC's support for group-based assignments, which automatically propagate role permissions to new members and revoke them from removed members.
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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Last reviewed: Jun 11, 2026
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