- A
Create a management group for the subscriptions.
Management groups are designed to organize subscriptions above the subscription level. They help apply consistent governance to groups of subscriptions such as Finance, HR, and Engineering.
- B
Apply a CanNotDelete lock to the production resource group.
A CanNotDelete lock prevents accidental deletion while still allowing normal management tasks such as updates and scaling. It is the right balance when you want protection without blocking day-to-day administration.
- C
Assign Reader to everyone in the company.
Why wrong: Reader access is about visibility, not organization or protection. Granting it broadly would not stop deletion and would also be too permissive for a production resource group.
- D
Use a distribution list for the subscriptions.
Why wrong: Distribution lists are used for email delivery, not Azure governance. They cannot organize subscriptions or protect resources from deletion.
- E
Move the resource group into a different region.
Why wrong: A resource group is not moved for deletion protection, and region choice does not prevent accidental removal. The correct control for accidental deletion is a lock.
Quick Answer
The correct answer is to use a management group and a CanNotDelete lock on the production resource group. A management group is the right choice because it allows you to aggregate the Finance, HR, and Engineering subscriptions under a single governance hierarchy, enabling you to apply policies or role-based access controls across all of them without configuring each subscription individually. The CanNotDelete lock then prevents accidental deletion of the specific production resource group, even if a user has Contributor or Owner permissions. On the AZ-104 exam, this scenario tests your understanding of combining hierarchical governance with resource-level protection; a common trap is to think a resource group lock alone suffices, but the question’s mention of multiple subscriptions demands the management group for centralized control. Remember the pairing: management groups govern the “big picture” across subscriptions, while CanNotDelete locks guard the “single point of failure.” A useful memory tip is “Group the subs, lock the resource.”
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
Finance, HR, and Engineering each have their own subscriptions, and one production resource group must not be deleted by mistake. Which two Azure features should be used? 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 management group for the subscriptions.
Option A is correct because a management group allows you to centrally manage governance, policy, and compliance across multiple Azure subscriptions. By placing the Finance, HR, and Engineering subscriptions under a single management group, you can apply Azure Policy or RBAC assignments that affect all subscriptions, ensuring consistent governance without needing to configure each subscription individually.
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 management group for the subscriptions.
Why this is correct
Management groups are designed to organize subscriptions above the subscription level. They help apply consistent governance to groups of subscriptions such as Finance, HR, and Engineering.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Apply a CanNotDelete lock to the production resource group.
Why this is correct
A CanNotDelete lock prevents accidental deletion while still allowing normal management tasks such as updates and scaling. It is the right balance when you want protection without blocking day-to-day administration.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign Reader to everyone in the company.
Why it's wrong here
Reader access is about visibility, not organization or protection. Granting it broadly would not stop deletion and would also be too permissive for a production resource group.
- ✗
Use a distribution list for the subscriptions.
Why it's wrong here
Distribution lists are used for email delivery, not Azure governance. They cannot organize subscriptions or protect resources from deletion.
- ✗
Move the resource group into a different region.
Why it's wrong here
A resource group is not moved for deletion protection, and region choice does not prevent accidental removal. The correct control for accidental deletion is a lock.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse RBAC roles (like Reader) with resource locks, thinking that restricting permissions alone prevents deletion, but locks are required to explicitly block delete operations regardless of permissions.
Detailed technical explanation
How to think about this question
A CanNotDelete lock is an Azure resource lock that prevents any user or process from deleting the resource group, even if they have Contributor or Owner permissions. This lock overrides RBAC permissions at the resource level, and it can be applied at the subscription, resource group, or individual resource scope. Management groups support hierarchical governance, allowing you to apply Azure Policy initiatives (e.g., requiring a lock on all production resource groups) across multiple subscriptions, which is critical for enterprise-scale environments with separate departmental subscriptions.
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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Manage Azure Identities and Governance — study guide chapter
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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 management group for the subscriptions. — Option A is correct because a management group allows you to centrally manage governance, policy, and compliance across multiple Azure subscriptions. By placing the Finance, HR, and Engineering subscriptions under a single management group, you can apply Azure Policy or RBAC assignments that affect all subscriptions, ensuring consistent governance without needing to configure each subscription individually.
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 →
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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