- A
At the subscription scope so the contractor inherits access everywhere in the subscription.
Why wrong: Subscription scope is broader than required and would grant access to all current and future resource groups. That violates least privilege because the contractor only needs access to one virtual machine. It would also make accidental overreach more likely if new resources are added later.
- B
At the resource scope for vm-pay-01 so the contractor receives permissions only on that VM.
Assigning the role at the specific virtual machine resource scope limits the contractor to that VM only. Because Azure RBAC permissions inherit downward, this is the narrowest scope that still allows restart and read operations on vm-pay-01 without exposing other resources in the resource group.
- C
At the resource group scope because resource assignments cannot be applied to virtual machines.
Why wrong: Azure RBAC assignments can absolutely be applied at individual resource scope. Resource group scope would be valid technically, but it is wider than needed and would affect every resource in RG-Payroll. The question asks for the least-privilege placement.
- D
At the management group scope so the same role can be reused for all payroll subscriptions.
Why wrong: Management group scope is intended for broad governance patterns across multiple subscriptions. It is not appropriate for a contractor who must manage only one VM. That scope would grant far more access than required and could affect unrelated subscriptions.
Quick Answer
The correct answer is to assign the role at the resource scope for the single VM, vm-pay-01. This is because Azure Role-Based Access Control (RBAC) is hierarchical and inherits permissions downward, so assigning a role like Virtual Machine Contributor at the resource scope—the VM itself—grants the contractor permissions exclusively on that specific resource, preventing any access to other VMs in the resource group. On the AZ-104 exam, this scenario tests your understanding of scope granularity: management group, subscription, resource group, and resource. A common trap is assuming the resource group scope is narrow enough, but that would apply the role to all VMs within it. Remember the memory tip: “Scope it to the resource to restrict the force”—meaning to limit permissions to a single resource, assign the role at that resource’s scope, not its parent group.
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.
Based on the exhibit, a contractor must be able to restart only one virtual machine named vm-pay-01 and read its properties. The contractor must not be able to manage any other VM in the resource group. Where should the role assignment be created?
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 resource scope for vm-pay-01 so the contractor receives permissions only on that VM.
Option B is correct because Azure RBAC allows role assignments at the resource scope, which in this case is the virtual machine vm-pay-01. By assigning a role (e.g., Virtual Machine Contributor or a custom role with restart and read permissions) directly to the VM resource, the contractor receives permissions only on that specific VM, fulfilling the requirement to restrict access to other VMs in the resource 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.
- ✗
At the subscription scope so the contractor inherits access everywhere in the subscription.
Why it's wrong here
Subscription scope is broader than required and would grant access to all current and future resource groups. That violates least privilege because the contractor only needs access to one virtual machine. It would also make accidental overreach more likely if new resources are added later.
- ✓
At the resource scope for vm-pay-01 so the contractor receives permissions only on that VM.
Why this is correct
Assigning the role at the specific virtual machine resource scope limits the contractor to that VM only. Because Azure RBAC permissions inherit downward, this is the narrowest scope that still allows restart and read operations on vm-pay-01 without exposing other resources in the resource group.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
At the resource group scope because resource assignments cannot be applied to virtual machines.
Why it's wrong here
Azure RBAC assignments can absolutely be applied at individual resource scope. Resource group scope would be valid technically, but it is wider than needed and would affect every resource in RG-Payroll. The question asks for the least-privilege placement.
- ✗
At the management group scope so the same role can be reused for all payroll subscriptions.
Why it's wrong here
Management group scope is intended for broad governance patterns across multiple subscriptions. It is not appropriate for a contractor who must manage only one VM. That scope would grant far more access than required and could affect unrelated subscriptions.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume role assignments must be at the resource group or subscription scope, forgetting that Azure RBAC supports direct assignments at the individual resource scope, which is the most precise way to grant permissions to a single VM.
Detailed technical explanation
How to think about this question
Azure RBAC role assignments are inherited from higher scopes (management group, subscription, resource group) down to lower scopes (resource). Assigning at the resource scope creates a direct assignment that overrides any broader assignments only for that resource, but does not affect other resources. The Virtual Machine Contributor role includes the 'Microsoft.Compute/virtualMachines/restart/action' and read permissions, but for a more restrictive custom role, you would include 'Microsoft.Compute/virtualMachines/read' and 'Microsoft.Compute/virtualMachines/restart/action' at the resource scope.
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.
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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 resource scope for vm-pay-01 so the contractor receives permissions only on that VM. — Option B is correct because Azure RBAC allows role assignments at the resource scope, which in this case is the virtual machine vm-pay-01. By assigning a role (e.g., Virtual Machine Contributor or a custom role with restart and read permissions) directly to the VM resource, the contractor receives permissions only on that specific VM, fulfilling the requirement to restrict access to other VMs in the resource 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
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 contractor must manage only VM1 and VM2 in rg-prod. The contractor must not be able to manage any other resource in the resource group. Which two role assignment scopes should you create? Select two.
medium- ✓ A.Assign the role at the VM1 resource scope.
- ✓ B.Assign the role at the VM2 resource scope.
- C.Assign the role at the rg-prod resource group scope.
- D.Assign the role at the subscription scope.
- E.Assign the role at the management group scope.
Why A: Assigning the role at the VM1 resource scope (Option A) is correct because Azure RBAC allows you to scope a role assignment to an individual resource, such as a virtual machine. This grants the contractor permissions to manage only VM1, without affecting any other resources in the resource group. The same logic applies to VM2, making the resource-level scope the precise way to restrict management to just those two VMs.
Variation 2. A finance analyst needs read-only access to one storage account named stprod01. The analyst must not see other resources in the subscription. Where should you assign the Reader role?
easy- A.At the management group scope that contains the subscription
- B.At the subscription scope that contains the storage account
- C.At the resource group that contains the storage account
- ✓ D.At the storage account resource scope
Why D: Assigning the Reader role at the storage account resource scope (stprod01) grants read-only access exclusively to that specific storage account. This meets the requirement of restricting the analyst from seeing any other resources in the subscription, as role assignments at a higher scope (e.g., resource group, subscription, management group) would inherit permissions to all resources under that scope.
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.
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