- A
At the management group that contains the subscriptions.
Management group scope is designed for governance that must apply across multiple subscriptions, including subscriptions added later under the same hierarchy. A role assignment at that level is inherited by child subscriptions and their resources, which is ideal for broad read-only audit access.
- B
At one subscription and rely on inheritance to reach the others.
Why wrong: RBAC inheritance does not cross from one subscription to unrelated subscriptions. Assigning at one subscription would not reach the others.
- C
At a resource group in a single subscription.
Why wrong: A resource group assignment is limited to that group and its children. It cannot cover every subscription in the organization.
- D
At an individual resource that the audit team will inspect.
Why wrong: A resource-level assignment is far too narrow for an organization-wide audit requirement and would not scale to future subscriptions.
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 platform team wants every current and future subscription under the company's Azure hierarchy to inherit Reader access for a central audit group. The team does not want to create separate assignments for each subscription. Where should the role be assigned?
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
At the management group that contains the subscriptions.
Assigning the Reader role at the management group level ensures that all current and future subscriptions within that management group inherit the assignment via Azure RBAC inheritance. This meets the requirement without needing separate assignments per subscription, as role assignments flow down the hierarchy from management group to subscription to resource group to resource.
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.
- ✓
At the management group that contains the subscriptions.
Why this is correct
Management group scope is designed for governance that must apply across multiple subscriptions, including subscriptions added later under the same hierarchy. A role assignment at that level is inherited by child subscriptions and their resources, which is ideal for broad read-only audit access.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
At one subscription and rely on inheritance to reach the others.
Why it's wrong here
RBAC inheritance does not cross from one subscription to unrelated subscriptions. Assigning at one subscription would not reach the others.
When this WOULD be correct
This option would be correct if the question asked for assigning a role to a specific subscription only, without requiring inheritance to other subscriptions, and the audit team only needs access to that one subscription.
- ✗
At a resource group in a single subscription.
Why it's wrong here
A resource group assignment is limited to that group and its children. It cannot cover every subscription in the organization.
When this WOULD be correct
This would be correct if the question asked: 'An audit team needs to review resources within a specific resource group across multiple subscriptions, but only for that resource group. Where should Reader access be assigned?'
- ✗
At an individual resource that the audit team will inspect.
Why it's wrong here
A resource-level assignment is far too narrow for an organization-wide audit requirement and would not scale to future subscriptions.
When this WOULD be correct
This would be correct if the question asked: 'An audit team needs to inspect a specific virtual machine and should have read-only access to that VM only, without access to any other resources. Where should the role be assigned?'
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓At the management group that contains the subscriptions.Correct answer▾
Why this is correct
Management group scope is designed for governance that must apply across multiple subscriptions, including subscriptions added later under the same hierarchy. A role assignment at that level is inherited by child subscriptions and their resources, which is ideal for broad read-only audit access.
✗At one subscription and rely on inheritance to reach the others.Wrong answer — click to see why▾
Why this is wrong here
Role assignments at a single subscription do not inherit to other subscriptions. The question requires a single assignment to cover all current and future subscriptions, which is only possible at the management group level.
★ When this WOULD be the correct answer
This option would be correct if the question asked for assigning a role to a specific subscription only, without requiring inheritance to other subscriptions, and the audit team only needs access to that one subscription.
Why candidates choose this
Candidates may mistakenly believe that Azure RBAC role assignments at one subscription propagate to all subscriptions in the same management group, confusing subscription-level inheritance with management group-level inheritance.
✗At a resource group in a single subscription.Wrong answer — click to see why▾
Why this is wrong here
Assigning at a resource group only grants access to resources within that group, not to all subscriptions under the management group hierarchy. The requirement is for every current and future subscription to inherit Reader access, which requires assignment at a higher scope like a management group.
★ When this WOULD be the correct answer
This would be correct if the question asked: 'An audit team needs to review resources within a specific resource group across multiple subscriptions, but only for that resource group. Where should Reader access be assigned?'
Why candidates choose this
Candidates may think resource groups are the most granular scope that still allows inheritance to multiple resources, but they overlook that inheritance does not span across subscriptions or management groups.
✗At an individual resource that the audit team will inspect.Wrong answer — click to see why▾
Why this is wrong here
Assigning at an individual resource only grants Reader access to that specific resource, not to the entire subscription or management group hierarchy. The question requires inheritance to all current and future subscriptions, which cannot be achieved at the resource level.
★ When this WOULD be the correct answer
This would be correct if the question asked: 'An audit team needs to inspect a specific virtual machine and should have read-only access to that VM only, without access to any other resources. Where should the role be assigned?'
Why candidates choose this
Candidates may think that assigning at a resource is sufficient for the audit team's needs, misunderstanding that the requirement is for all subscriptions, not a single resource.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think assigning the role at one subscription will propagate to others via inheritance, but Azure RBAC inheritance is strictly hierarchical and does not apply across sibling subscriptions—only downward from a management group or parent scope.
Detailed technical explanation
How to think about this question
Azure RBAC uses a hierarchical scope model: management group > subscription > resource group > resource. Assignments at a higher scope are inherited by all child scopes, but inheritance does not cross between sibling scopes (e.g., one subscription to another). The Reader role grants read-only access to all resources within the assigned scope, including metadata and data, but does not allow modifications. This design enables centralized governance without redundant assignments.
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.
Quick reference
Access Control Model Comparison
| Model | Acronym | Who Controls Access? | Best For |
|---|---|---|---|
| Discretionary Access Control | DAC | Resource owner | Small teams, file shares |
| Mandatory Access Control | MAC | System / security labels | Classified govt / military |
| Role-Based Access Control | RBAC | Administrator (via roles) | Enterprise environments |
| Attribute-Based Access Control | ABAC | Policy engine (user + resource attributes) | Fine-grained, dynamic policies |
| Rule-Based Access Control | RuBAC | System rules / ACLs | Firewall rules, network ACLs |
What to study next
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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: At the management group that contains the subscriptions. — Assigning the Reader role at the management group level ensures that all current and future subscriptions within that management group inherit the assignment via Azure RBAC inheritance. This meets the requirement without needing separate assignments per subscription, as role assignments flow down the hierarchy from management group to subscription to resource group to resource.
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 →
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Last reviewed: Jun 11, 2026
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