- A
The Contributor role allows deployments in the resource group, but it cannot override a deny policy inherited from a higher scope.
Contributor grants broad management rights within its scope, but Azure Policy enforcement is separate from RBAC. A deny effect blocks the resource creation even when the user has sufficient permissions. The fact that the deployment succeeds once the public IP is removed strongly indicates a policy rule, not a permissions issue.
- B
The policy assignment can apply to the resource group because policy inheritance flows from management group to subscription to resource group.
Azure Policy assignments at a management group or subscription can affect child scopes automatically. That inheritance explains why a resource group deployment can be denied even when the user has access at the resource-group scope. The template change works because it stops violating the inherited policy condition.
- C
A CanNotDelete lock is the reason the public IP resource cannot be created.
Why wrong: A CanNotDelete lock only prevents deletion of locked resources. It does not stop creating a new VM, NIC, or public IP, and it does not explain a policy denial message. This distractor confuses resource protection with compliance enforcement.
- D
Assigning Owner on the resource group would automatically bypass the policy denial and allow the template to deploy unchanged.
Why wrong: Owner provides full RBAC permissions at the assigned scope, but Azure Policy still evaluates independently. A deny policy remains effective even for highly privileged users unless the policy definition or assignment changes. RBAC elevation does not override policy compliance rules.
- E
Moving the VM to another subnet in the same virtual network would remove the inherited policy effect.
Why wrong: Policy scope is tied to Azure hierarchy, not to whether a VM uses one subnet or another. Changing the subnet may affect networking, but it does not remove a policy inherited from the management group or subscription. The denial would remain until the policy condition is no longer met.
Quick Answer
The correct answer is that the Contributor role cannot override an Azure Policy deny effect, and policy inheritance flows from management group to subscription to resource group. This is because Azure Policy and Role-Based Access Control (RBAC) operate on entirely different planes: RBAC controls who can perform actions based on assigned roles, while Azure Policy enforces rules on resource configurations regardless of the user’s permissions. Even with Contributor-level access, a deny policy assigned at a higher scope—such as a subscription or management group—will block any deployment that violates its rules, as seen when the public IP resource triggered the denial. On the AZ-104 exam, this distinction is a common trap: candidates often confuse a permissions failure (RBAC) with a policy violation, but remember that policy denials appear as deployment errors, not access errors. A useful memory tip is “RBAC says who, Policy says how”—RBAC governs identity, while Policy governs configuration compliance.
AZ-104 Deploy and Manage Azure Compute Practice Question
This AZ-104 practice question tests your understanding of deploy and manage azure compute. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 developer has the Contributor role on a resource group. A Bicep deployment that creates a VM with a public IP fails with a policy denial, but the same template succeeds after the public IP resource is removed. Which two statements are true? 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
The Contributor role allows deployments in the resource group, but it cannot override a deny policy inherited from a higher scope.
Option A is correct because the Contributor role grants full management access to resources within the resource group, but it cannot override Azure Policy effects such as 'deny'. Policy inheritance flows from higher scopes (management group, subscription) down to the resource group, and even a Contributor cannot bypass a deny policy assigned at a higher scope. The Bicep deployment fails specifically because the public IP resource violates a policy rule, not because of a lack of permissions on the role itself.
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.
- ✓
The Contributor role allows deployments in the resource group, but it cannot override a deny policy inherited from a higher scope.
Why this is correct
Contributor grants broad management rights within its scope, but Azure Policy enforcement is separate from RBAC. A deny effect blocks the resource creation even when the user has sufficient permissions. The fact that the deployment succeeds once the public IP is removed strongly indicates a policy rule, not a permissions issue.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
The policy assignment can apply to the resource group because policy inheritance flows from management group to subscription to resource group.
Why this is correct
Azure Policy assignments at a management group or subscription can affect child scopes automatically. That inheritance explains why a resource group deployment can be denied even when the user has access at the resource-group scope. The template change works because it stops violating the inherited policy condition.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A CanNotDelete lock is the reason the public IP resource cannot be created.
Why it's wrong here
A CanNotDelete lock only prevents deletion of locked resources. It does not stop creating a new VM, NIC, or public IP, and it does not explain a policy denial message. This distractor confuses resource protection with compliance enforcement.
- ✗
Assigning Owner on the resource group would automatically bypass the policy denial and allow the template to deploy unchanged.
Why it's wrong here
Owner provides full RBAC permissions at the assigned scope, but Azure Policy still evaluates independently. A deny policy remains effective even for highly privileged users unless the policy definition or assignment changes. RBAC elevation does not override policy compliance rules.
- ✗
Moving the VM to another subnet in the same virtual network would remove the inherited policy effect.
Why it's wrong here
Policy scope is tied to Azure hierarchy, not to whether a VM uses one subnet or another. Changing the subnet may affect networking, but it does not remove a policy inherited from the management group or subscription. The denial would remain until the policy condition is no longer met.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy denials with Azure role-based access control (RBAC) or resource locks, leading candidates to incorrectly assume that a higher-privileged role like Owner can override a policy denial, or that a CanNotDelete lock blocks resource creation.
Trap categories for this question
Similar concept trap
A CanNotDelete lock only prevents deletion of locked resources. It does not stop creating a new VM, NIC, or public IP, and it does not explain a policy denial message. This distractor confuses resource protection with compliance enforcement.
Detailed technical explanation
How to think about this question
Azure Policy uses a deny effect that is evaluated during resource creation via Azure Resource Manager (ARM). The policy engine checks all applicable policy assignments at every scope in the hierarchy (management group → subscription → resource group → resource). Even with Contributor or Owner roles, if a policy with a 'deny' effect is assigned at a higher scope, the deployment is blocked before any role-based access control (RBAC) check occurs. This is a key distinction: RBAC controls who can act, while Azure Policy controls what resources are allowed.
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?
Deploy and Manage Azure Compute — This question tests Deploy and Manage Azure Compute — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The Contributor role allows deployments in the resource group, but it cannot override a deny policy inherited from a higher scope. — Option A is correct because the Contributor role grants full management access to resources within the resource group, but it cannot override Azure Policy effects such as 'deny'. Policy inheritance flows from higher scopes (management group, subscription) down to the resource group, and even a Contributor cannot bypass a deny policy assigned at a higher scope. The Bicep deployment fails specifically because the public IP resource violates a policy rule, not because of a lack of permissions on the role itself.
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
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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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