Exhibit
Azure hierarchy: Tenant root ├── Platform-MG │ ├── Prod-MG │ └── Sandbox-MG Requirement: - New subscription: Finance-Prod - It must inherit the production policy baseline and reporting settings automatically.
Based on the exhibit, where should the new subscription be placed so it inherits the production governance baseline automatically?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Best answer
Place the subscription under Prod-MG.
Putting the subscription under Prod-MG ensures it inherits the production governance controls assigned there. Management group inheritance is the right tool when central IT wants future subscriptions to receive the same baseline automatically.
Distractor review
Place the subscription under Sandbox-MG.
Sandbox-MG would apply the wrong governance baseline and is intended for nonproduction subscriptions.
Distractor review
Create a resource group named Finance-Prod instead of assigning a management group.
Resource groups exist inside subscriptions and cannot replace the management group hierarchy for inherited governance.
Distractor review
Move the subscription to the tenant root and assign policies later.
Tenant root is broader and does not express the intended production versus sandbox boundary.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- 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.
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
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Question 2
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Question 3
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Question 4
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Question 5
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Question 6
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Place the subscription under Prod-MG. — Prod-MG is the correct location because management group assignments flow down to subscriptions beneath them. If production policies, reporting, or access controls are set on Prod-MG, a new production subscription placed there automatically inherits those settings. This gives central IT a scalable way to keep production and sandbox environments separated while maintaining consistent governance. Why others are wrong: Sandbox-MG is for nonproduction workloads and would not enforce the right baseline. A resource group is too low in the hierarchy to organize subscription-wide governance. Tenant root is too generic and does not provide the intended operational boundary between production and sandbox.
What should I do if I get this AZ-104 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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