The answer is Azure Policy assigned at the management group scope. This is correct because Azure Policy enforces governance rules across an entire hierarchy; when you assign a policy definition that blocks unapproved resource types to a management group like Corp-MG, all child subscriptions automatically inherit that policy, ensuring consistent compliance without needing to configure each subscription individually. On the AZ-104 exam, this scenario tests your understanding of policy inheritance and scope management—a common trap is choosing a subscription-level assignment or Azure RBAC, which cannot enforce resource type restrictions across multiple subscriptions. Remember the key distinction: management group scope applies policy to every subscription underneath it, while subscription scope only affects that single subscription. A useful memory tip is to think of the management group as the umbrella—whatever rule you set under it covers everything below.
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 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.
✗
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.
✗
A budget alert for each subscription
Why it's wrong here
Budget alerts monitor cost and do not enforce deployment standards.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
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.
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Question Discussion
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