Question 866 of 1,170

Manage Azure Identities and Governance →mediumMultiple ChoiceObjective-mapped

AZ-104 Manage Azure Identities and Governance Practice Question

This AZ-104 practice question tests your understanding of manage azure identities and governance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.

An enterprise uses one management group to contain five subscriptions for a business unit. A compliance auditor in an Entra ID group needs read-only access to every current and future resource in all five subscriptions, but must not see resources in other business units. What is the best scope for the Reader role assignment?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.

Question 1mediummultiple choice

Full question →

A
Assign Reader at the management group that contains the five subscriptions.
This scope lets the role flow downward to all subscriptions, resource groups, and resources under that management group. It is the narrowest place that still covers every current and future subscription in that business unit. The auditor gets consistent read-only visibility without requiring separate assignments for each subscription, and access stays isolated from other management groups.
B
Assign Reader separately at each subscription in the business unit.
Why wrong: This would provide the needed access, but only after creating and maintaining multiple assignments. It does not take advantage of inheritance from the parent container, so future subscriptions would require manual work. The requirement asks for the best scope, not just a workable one.
C
Assign Reader at a single resource group within one subscription.
Why wrong: A resource group scope is too narrow because it only covers resources inside that one group. The auditor would miss resources in other resource groups and other subscriptions. This does not satisfy the need for organization-wide visibility across the business unit.
D
Assign Reader directly to each resource that the auditor should see.
Why wrong: Per-resource assignments are operationally expensive and easy to miss. They do not scale to all current and future resources in five subscriptions. This approach also creates unnecessary administrative overhead compared with inheritance from the management group.

Full breakdown with real-world context →

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 at the management group that contains the five subscriptions.

Assigning the Reader role at the management group scope grants inherited read-only access to all current and future resources within every subscription under that management group, while preventing access to resources in other business units that are in separate management groups. This satisfies the auditor's requirement for a single, scalable assignment that automatically covers new subscriptions added to the management group.

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 at the management group that contains the five subscriptions.
Why this is correct
This scope lets the role flow downward to all subscriptions, resource groups, and resources under that management group. It is the narrowest place that still covers every current and future subscription in that business unit. The auditor gets consistent read-only visibility without requiring separate assignments for each subscription, and access stays isolated from other management groups.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Assign Reader separately at each subscription in the business unit.
Why it's wrong here
This would provide the needed access, but only after creating and maintaining multiple assignments. It does not take advantage of inheritance from the parent container, so future subscriptions would require manual work. The requirement asks for the best scope, not just a workable one.
✗
Assign Reader at a single resource group within one subscription.
Why it's wrong here
A resource group scope is too narrow because it only covers resources inside that one group. The auditor would miss resources in other resource groups and other subscriptions. This does not satisfy the need for organization-wide visibility across the business unit.
✗
Assign Reader directly to each resource that the auditor should see.
Why it's wrong here
Per-resource assignments are operationally expensive and easy to miss. They do not scale to all current and future resources in five subscriptions. This approach also creates unnecessary administrative overhead compared with inheritance from the management group.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates may think subscription-level assignments are necessary for granularity, overlooking that management group scope provides inheritance to all current and future subscriptions and resources within that group, which is the most efficient and correct approach for multi-subscription governance.

Detailed technical explanation

How to think about this question

Azure RBAC supports role assignments at four scopes: management group, subscription, resource group, and resource. Assignments at a higher scope are inherited by all child scopes, so a Reader assignment at the management group level propagates to all subscriptions, resource groups, and resources within that management group. This design aligns with Azure's hierarchical governance model, where management groups enable policy and access control aggregation across multiple subscriptions for a business unit.

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.

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.

10 questions 20 questions 30 questions 50 questions Timed 30

AZ-104 practice-test guide →Study guide →Browse all practice tests

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 at the management group that contains the five subscriptions. — Assigning the Reader role at the management group scope grants inherited read-only access to all current and future resources within every subscription under that management group, while preventing access to resources in other business units that are in separate management groups. This satisfies the auditor's requirement for a single, scalable assignment that automatically covers new subscriptions added to the management group.

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.

Are there clue words in this question I should notice?

Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.

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 →

How Courseiva writes practice questions · Editorial policy

Keep practising

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.

Loading comments…

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.