- A
Restrict allowed deployment locations.
Azure Policy is designed to enforce configuration standards such as allowed locations. It can block or audit deployments that do not match the approved region list, which is a compliance requirement rather than an access-control requirement.
- B
Require a Department tag on resources.
Azure Policy can evaluate whether a tag exists and enforce that new resources include required metadata. This is useful for cost tracking, ownership reporting, and governance compliance.
- C
Give users Contributor access to the subscription.
Why wrong: Contributor is an RBAC permission that controls what a user can do, not whether a resource matches a compliance rule. Access control and policy are separate functions.
- D
Create Microsoft Entra ID users for contractors.
Why wrong: User creation is an identity task in Microsoft Entra ID, not an Azure Policy task. Policy cannot create accounts or manage identities.
- E
Place a CanNotDelete lock on every resource group.
Why wrong: A lock protects resources from deletion, but it does not enforce allowed locations or required tags. Locks and policy solve different governance problems.
Enforce Allowed Locations and Required Tags with Azure Policy
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 company wants to stop users from creating resources in regions that are not approved and also require a Department tag on new resources. Which two tasks are best handled by Azure Policy? 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
Restrict allowed deployment locations.
Azure Policy can enforce organizational standards by evaluating resource properties against business rules. Option A is correct because the 'Allowed Locations' policy definition restricts users from deploying resources to any region not explicitly permitted, directly addressing the requirement to block unapproved regions. Option B is correct because the 'Require a tag and its value on resources' policy definition can enforce that a Department tag must exist on all new resources, ensuring compliance with tagging requirements.
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.
- ✓
Restrict allowed deployment locations.
Why this is correct
Azure Policy is designed to enforce configuration standards such as allowed locations. It can block or audit deployments that do not match the approved region list, which is a compliance requirement rather than an access-control requirement.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Require a Department tag on resources.
Why this is correct
Azure Policy can evaluate whether a tag exists and enforce that new resources include required metadata. This is useful for cost tracking, ownership reporting, and governance compliance.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Give users Contributor access to the subscription.
Why it's wrong here
Contributor is an RBAC permission that controls what a user can do, not whether a resource matches a compliance rule. Access control and policy are separate functions.
When this WOULD be correct
If the question asked 'Which Azure service should you use to grant users Contributor access to the subscription?', then 'Give users Contributor access to the subscription' would be correct, as it is an RBAC assignment.
- ✗
Create Microsoft Entra ID users for contractors.
Why it's wrong here
User creation is an identity task in Microsoft Entra ID, not an Azure Policy task. Policy cannot create accounts or manage identities.
When this WOULD be correct
In a scenario where the question asks about managing user identities or automating user provisioning for contractors, the correct answer would be to create Microsoft Entra ID users, possibly via Microsoft Entra ID administration or automation tools.
- ✗
Place a CanNotDelete lock on every resource group.
Why it's wrong here
A lock protects resources from deletion, but it does not enforce allowed locations or required tags. Locks and policy solve different governance problems.
When this WOULD be correct
A company wants to prevent accidental deletion of all resource groups in a subscription. In that scenario, assigning a CanNotDelete lock at the subscription or resource group level would be the correct approach.
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.
✓Restrict allowed deployment locations.Correct answer▾
Why this is correct
Azure Policy is designed to enforce configuration standards such as allowed locations. It can block or audit deployments that do not match the approved region list, which is a compliance requirement rather than an access-control requirement.
✗Give users Contributor access to the subscription.Wrong answer — click to see why▾
Why this is wrong here
Azure Policy does not manage role-based access control (RBAC) like granting Contributor access. RBAC is handled by Azure role-based access control, not Azure Policy.
★ When this WOULD be the correct answer
If the question asked 'Which Azure service should you use to grant users Contributor access to the subscription?', then 'Give users Contributor access to the subscription' would be correct, as it is an RBAC assignment.
Why candidates choose this
Candidates may confuse Azure Policy with Azure RBAC, thinking policy can assign permissions, or they may mistakenly believe that restricting actions (like creating resources) is the same as granting permissions.
✗Create Microsoft Entra ID users for contractors.Wrong answer — click to see why▾
Why this is wrong here
Azure Policy does not manage user identities; creating Microsoft Entra ID users is an identity management task handled by Microsoft Entra ID, not Azure Policy.
★ When this WOULD be the correct answer
In a scenario where the question asks about managing user identities or automating user provisioning for contractors, the correct answer would be to create Microsoft Entra ID users, possibly via Microsoft Entra ID administration or automation tools.
Why candidates choose this
Candidates may confuse Azure Policy with broader governance tools, thinking it can handle identity creation, or they may misassociate 'policy' with any administrative task.
✗Place a CanNotDelete lock on every resource group.Wrong answer — click to see why▾
Why this is wrong here
Placing a CanNotDelete lock on every resource group does not address the requirement to restrict regions or enforce tagging; it prevents deletion of resource groups, which is unrelated to the stated goals.
★ When this WOULD be the correct answer
A company wants to prevent accidental deletion of all resource groups in a subscription. In that scenario, assigning a CanNotDelete lock at the subscription or resource group level would be the correct approach.
Why candidates choose this
Candidates may confuse locks with policy, thinking that locks can enforce compliance, or they may overestimate the scope of locks as a governance tool.
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 often confuse Azure Policy with Azure RBAC or resource locks, thinking that policy can manage user permissions or prevent deletion, when in fact policy is solely for enforcing rules on resource properties like location and tags.
Detailed technical explanation
How to think about this question
Azure Policy uses policy definitions and initiatives that are evaluated during resource creation and existing resource compliance checks via the Azure Resource Manager (ARM). The 'Allowed Locations' policy leverages the 'Microsoft.Authorization/policyDefinitions' resource type with a 'policyRule' that compares the resource location against a list of allowed regions, and it can be applied at management group, subscription, or resource group scope. Tag requirements are enforced through the 'append' or 'deny' effect, where the policy can automatically add missing tags or block creation if tags are absent, ensuring governance without manual intervention.
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.
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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: Restrict allowed deployment locations. — Azure Policy can enforce organizational standards by evaluating resource properties against business rules. Option A is correct because the 'Allowed Locations' policy definition restricts users from deploying resources to any region not explicitly permitted, directly addressing the requirement to block unapproved regions. Option B is correct because the 'Require a tag and its value on resources' policy definition can enforce that a Department tag must exist on all new resources, ensuring compliance with tagging requirements.
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 company wants to stop users from deploying resources in any region except East US and West US. Users still need to be able to create resources if they choose an approved region. Which Azure feature should the administrator use?
medium- A.Azure RBAC with a Contributor role at the subscription scope.
- ✓ B.Azure Policy with a deny effect assigned at the appropriate scope.
- C.A resource lock at the subscription level.
- D.A tag requirement in Azure RBAC.
Why B: Azure Policy with a deny effect can enforce that resource deployments are only allowed in specified regions (East US and West US) by evaluating the location property of the resource against a policy definition. When a user attempts to deploy a resource in a non-approved region, the policy engine rejects the request before any resource creation begins, ensuring compliance without blocking approved regions.
Variation 2. Your company wants every subscription under the Corp-MG management group to block the creation of resource groups unless the deployment includes the tags CostCenter and Environment. You need a centralized solution that is inherited by child subscriptions. What should you configure?
hard- ✓ A.An Azure Policy assignment at the management group scope
- B.A custom RBAC role at the tenant root
- C.A CanNotDelete lock on each subscription
- D.A subscription budget alert
Why A: Azure Policy at the management group scope is the correct centralized solution because it enforces a policy (e.g., requiring tags) that is inherited by all child subscriptions and resource groups. This ensures that any deployment without the required tags is denied, meeting the requirement for a governance rule that applies across the entire Corp-MG hierarchy.
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Last reviewed: Jun 11, 2026
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