- A
Azure Policy assigned at the management group scope
Management group policy assignments are inherited by child subscriptions and can restrict allowed resource types.
- B
A custom RBAC role assigned at the tenant root
Why wrong: RBAC governs permissions, not which resource types are allowed.
- C
A ReadOnly lock on each subscription
Why wrong: A ReadOnly lock would block many changes but does not selectively restrict resource types.
- D
A budget alert for each subscription
Why wrong: Budget alerts monitor cost and do not enforce deployment standards.
Question 694 of 1,170
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.
Your organization wants all subscriptions under the Corp-MG management group to inherit a policy that blocks deployment of resource types not on an approved list. Which Azure feature should you use?
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
✓
Azure Policy assigned at the management group scope
Azure Policy assigned at the management group scope is the correct choice because it allows you to enforce governance rules across all subscriptions within a management group hierarchy. By creating a policy definition that blocks deployment of resource types not on an approved list and assigning it to the Corp-MG management group, the policy will be inherited by all child subscriptions, ensuring consistent compliance without manual configuration per subscription.
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.
- ✓
Azure Policy assigned at the management group scope
Why this is correct
Management group policy assignments are inherited by child subscriptions and can restrict allowed resource types.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A custom RBAC role assigned at the tenant root
Why it's wrong here
RBAC governs permissions, not which resource types are allowed.
When this WOULD be correct
A custom RBAC role assigned at the tenant root would be correct if the question asked for a way to grant a security team read-only access to all subscriptions in the tenant without assigning roles per subscription.
- ✗
A ReadOnly lock on each subscription
Why it's wrong here
A ReadOnly lock would block many changes but does not selectively restrict resource types.
When this WOULD be correct
A ReadOnly lock would be correct if the question asked: 'You need to prevent accidental deletion or modification of critical resources in a subscription. Which feature should you use?'
- ✗
A budget alert for each subscription
Why it's wrong here
Budget alerts monitor cost and do not enforce deployment standards.
When this WOULD be correct
A question asks: 'Your organization wants to receive an email notification when any subscription under the Corp-MG management group exceeds its monthly budget. Which Azure feature should you use?' In that scenario, budget alerts assigned at the subscription or management group scope would be correct.
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.
✓Azure Policy assigned at the management group scopeCorrect answer▾
Why this is correct
Management group policy assignments are inherited by child subscriptions and can restrict allowed resource types.
✗A custom RBAC role assigned at the tenant rootWrong answer — click to see why▾
Why this is wrong here
Custom RBAC roles control access permissions, not resource deployment restrictions. They cannot block resource types; Azure Policy is required for that.
★ When this WOULD be the correct answer
A custom RBAC role assigned at the tenant root would be correct if the question asked for a way to grant a security team read-only access to all subscriptions in the tenant without assigning roles per subscription.
Why candidates choose this
Candidates may confuse RBAC with Azure Policy because both involve 'roles' and 'assignments,' and the management group scope suggests a broad control mechanism.
✗A ReadOnly lock on each subscriptionWrong answer — click to see why▾
Why this is wrong here
A ReadOnly lock prevents modifications to resources but does not block deployment of unapproved resource types; it only prevents deletion or modification of existing resources.
★ When this WOULD be the correct answer
A ReadOnly lock would be correct if the question asked: 'You need to prevent accidental deletion or modification of critical resources in a subscription. Which feature should you use?'
Why candidates choose this
Candidates may confuse locks with policy enforcement, thinking a ReadOnly lock can block new deployments, but locks only affect existing resources, not new ones.
✗A budget alert for each subscriptionWrong answer — click to see why▾
Why this is wrong here
Budget alerts monitor spending and trigger notifications, but they cannot block resource deployments or enforce allowed resource type lists. They are a cost management tool, not a policy enforcement mechanism.
★ When this WOULD be the correct answer
A question asks: 'Your organization wants to receive an email notification when any subscription under the Corp-MG management group exceeds its monthly budget. Which Azure feature should you use?' In that scenario, budget alerts assigned at the subscription or management group scope would be correct.
Why candidates choose this
Candidates may confuse cost control with resource governance, thinking that budget alerts can prevent deployments by stopping overspending, but alerts only notify and do not block actions.
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 confusing Azure Policy (which enforces rules on resource properties and types) with Azure RBAC (which controls user permissions), leading candidates to incorrectly choose a custom RBAC role when the question explicitly asks about blocking resource types.
Detailed technical explanation
How to think about this question
Azure Policy uses a JSON-based policy definition with 'effect' types such as 'Deny' or 'Audit' to control resource compliance. When assigned at a management group, policy inheritance follows the hierarchy, and any subscription under that group automatically receives the policy, with the ability to exclude specific child management groups or subscriptions via exclusions. This is distinct from RBAC, which operates on Azure AD role assignments and has no effect on resource type restrictions.
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: Azure Policy assigned at the management group scope — Azure Policy assigned at the management group scope is the correct choice because it allows you to enforce governance rules across all subscriptions within a management group hierarchy. By creating a policy definition that blocks deployment of resource types not on an approved list and assigning it to the Corp-MG management group, the policy will be inherited by all child subscriptions, ensuring consistent compliance without manual configuration per subscription.
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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