- A
Create a Microsoft Entra ID security group for the contractors.
A security group gives the administrator one place to manage a changing set of users. When contractors join or leave, membership can be updated without rewriting Azure role assignments. This is the standard way to delegate access for a team or project that changes often.
- B
Assign the Azure RBAC role directly to each contractor user account.
Why wrong: Direct user assignments work, but they require repeated updates every time a contractor changes. That creates extra administration and increases the chance of missing someone during a transition.
- C
Assign the Azure RBAC role to the security group.
Assigning the role to the group keeps the permission model simple and scalable. The role stays in place while membership changes, so access automatically follows the users who are added to the group.
- D
Create a management group for the contractors.
Why wrong: Management groups organize subscriptions, not individual contractor access. They are useful for governance at a higher level, but they do not solve day-to-day user membership management.
- E
Use a resource lock to control access.
Why wrong: Resource locks protect resources from deletion or modification, but they do not grant or delegate access. Locks are a protection feature, not an identity or authorization feature.
Quick Answer
The answer is to create a Microsoft Entra ID security group for contractors and assign the Azure RBAC role to that group. This is correct because it enables group-based RBAC, where Azure access updates automatically when membership changes, eliminating the need to edit role assignments for each person added or removed. On the AZ-104 exam, this scenario tests your understanding of combining Azure AD dynamic groups with RBAC role assignments to manage temporary staff efficiently. A common trap is thinking you must assign roles directly to users or use Azure Policy instead; remember that RBAC roles are assigned to security groups, not individual users. The key memory tip is “group the role, not the user”—if membership changes, access follows the group automatically.
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 month. The admin wants Azure access to update automatically when membership changes without editing role assignments for each person. Which two actions should the admin take? 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
Create a Microsoft Entra ID security group for the contractors.
Option A is correct because creating a Microsoft Entra ID security group for contractors allows the admin to manage membership dynamically. When contractors are added or removed from the group, their Azure access updates automatically without needing to edit individual role assignments. This leverages group-based RBAC, where the group is assigned the role, and membership changes propagate to Azure RBAC.
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.
- ✓
Create a Microsoft Entra ID security group for the contractors.
Why this is correct
A security group gives the administrator one place to manage a changing set of users. When contractors join or leave, membership can be updated without rewriting Azure role assignments. This is the standard way to delegate access for a team or project that changes often.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign the Azure RBAC role directly to each contractor user account.
Why it's wrong here
Direct user assignments work, but they require repeated updates every time a contractor changes. That creates extra administration and increases the chance of missing someone during a transition.
- ✓
Assign the Azure RBAC role to the security group.
Why this is correct
Assigning the role to the group keeps the permission model simple and scalable. The role stays in place while membership changes, so access automatically follows the users who are added to the group.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a management group for the contractors.
Why it's wrong here
Management groups organize subscriptions, not individual contractor access. They are useful for governance at a higher level, but they do not solve day-to-day user membership management.
- ✗
Use a resource lock to control access.
Why it's wrong here
Resource locks protect resources from deletion or modification, but they do not grant or delegate access. Locks are a protection feature, not an identity or authorization feature.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse management groups (Option D) with security groups, thinking they can be used for access control, but management groups are for organizing subscriptions and applying policies, not for assigning RBAC roles to users.
Detailed technical explanation
How to think about this question
Under the hood, Azure RBAC evaluates role assignments at the time of access. When a user is added to a Microsoft Entra ID security group that has a role assignment, the change is propagated to Azure RBAC within minutes (typically 5-10 minutes). This propagation relies on the Azure AD-to-Azure RBAC synchronization, which reads group membership from Microsoft Entra ID and updates the effective permissions. In real-world scenarios, this approach is critical for managing temporary staff or rotating contractors without manual overhead.
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 ID security group for the contractors. — Option A is correct because creating a Microsoft Entra ID security group for contractors allows the admin to manage membership dynamically. When contractors are added or removed from the group, their Azure access updates automatically without needing to edit individual role assignments. This leverages group-based RBAC, where the group is assigned the role, and membership changes propagate to Azure RBAC.
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 →
Same concept, more angles
2 more ways this is tested on AZ-104
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A project team adds and removes contractors every month. The team wants Azure role assignments to stay the same when individual contractors leave or join, and access should be granted to everyone on the team through one control point. What should the administrator assign the Azure role to?
medium- ✓ A.A Microsoft Entra security group
- B.A Microsoft 365 group
- C.A guest user account
- D.A managed identity
Why A: Assigning an Azure role to a Microsoft Entra security group provides a single control point for managing permissions. When contractors join or leave, the administrator only needs to add or remove their user accounts from the group, and the role assignments remain intact. This decouples access from individual user accounts and ensures consistent permissions for the entire team.
Variation 2. 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?
medium- A.Assign the Azure role directly to each contractor user account.
- ✓ B.Create a Microsoft Entra security group, add the contractors, and assign the Azure role to the group.
- C.Use a Microsoft 365 group and assign the Azure role to it.
- D.Create a management group for the contractors and assign the role there.
Why B: 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.
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Last reviewed: Jun 11, 2026
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