- 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.
Assign Reader Role at Management Group Scope
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?
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.
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.
When this WOULD be correct
If the requirement was to grant read-only access only to specific existing subscriptions without any future subscriptions, or if the management group was not used and subscriptions were managed independently, then assigning Reader at each subscription would be appropriate.
- ✗
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.
When this WOULD be correct
This option would be correct if the question required granting read-only access only to resources within a specific resource group, not across multiple subscriptions or management groups.
- ✗
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.
When this WOULD be correct
If the requirement were to grant read-only access only to a specific set of existing resources (e.g., a few VMs) with no need for future resources or subscription-wide access, then assigning Reader at the resource level would be appropriate.
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.
✓Assign Reader at the management group that contains the five subscriptions.Correct answer▾
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.
✗Assign Reader separately at each subscription in the business unit.Wrong answer — click to see why▾
Why this is wrong here
Assigning Reader at each subscription separately does not cover future resources in new subscriptions added to the management group, violating the requirement for access to all current and future resources.
★ When this WOULD be the correct answer
If the requirement was to grant read-only access only to specific existing subscriptions without any future subscriptions, or if the management group was not used and subscriptions were managed independently, then assigning Reader at each subscription would be appropriate.
Why candidates choose this
Candidates may think that assigning at the subscription level is sufficient and simpler, not realizing that management group assignment provides inheritance to future subscriptions and reduces administrative overhead.
✗Assign Reader at a single resource group within one subscription.Wrong answer — click to see why▾
Why this is wrong here
Assigning Reader at a single resource group would not grant access to all resources across five subscriptions, failing the requirement for read-only access to every current and future resource in all five subscriptions.
★ When this WOULD be the correct answer
This option would be correct if the question required granting read-only access only to resources within a specific resource group, not across multiple subscriptions or management groups.
Why candidates choose this
Candidates may think that assigning at a resource group is sufficient because it covers resources within that group, overlooking the need for broader scope across multiple subscriptions.
✗Assign Reader directly to each resource that the auditor should see.Wrong answer — click to see why▾
Why this is wrong here
Assigning Reader directly to each resource is impractical and does not scale; it fails to cover future resources and violates the requirement for read-only access to all current and future resources across five subscriptions.
★ When this WOULD be the correct answer
If the requirement were to grant read-only access only to a specific set of existing resources (e.g., a few VMs) with no need for future resources or subscription-wide access, then assigning Reader at the resource level would be appropriate.
Why candidates choose this
Candidates may think that assigning the role directly to each resource provides precise control and ensures the auditor sees only intended resources, overlooking the management group's ability to inherit permissions and cover future resources.
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 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.
- →
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: 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.
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
1 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 cloud operations team in the Corp business unit needs to read all Azure resources in every current and future subscription under the Corp management group to prepare monthly governance reports. They must not gain access to subscriptions that belong to other business units. What scope should the administrator use when assigning the Reader role?
medium- A.Subscription scope
- B.Resource group scope
- ✓ C.Management group scope
- D.Resource scope
Why C: The Reader role assigned at the management group scope grants read-only access to all subscriptions within that management group, including future subscriptions, because Azure RBAC permissions are inherited by child resources. This meets the requirement to cover all current and future subscriptions under the Corp management group while excluding subscriptions in other business units.
Keep practising
More AZ-104 practice questions
- A storage automation service principal must upload, read, and delete blob data in one container by using Microsoft Entra…
- A subnet contains several application servers. You need to allow inbound TCP 3389 only from a management subnet named Su…
- A subscription admin wants to investigate who changed a resource and also review the platform-generated events for that…
- Based on the exhibit, which Azure feature should the administrator use to track this kind of platform-wide service issue…
- An administrator wants a script running on an Azure VM to create a resource in Azure without storing any passwords or cl…
- A PowerShell script runs on an Azure VM every night and uses Azure CLI commands to create tags and VM resources in anoth…
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.