AZ-104 Manage Azure Identities and Governance Practice Question
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.
Exhibit
Azure governance hierarchy
Root management group
└── Corp
├── Prod
│ ├── Sub-001
│ └── Sub-002
└── NonProd
├── Sub-101
└── Sub-102
Requirement: The audit team needs read-only access across all subscriptions that are or will be placed under Corp, without creating separate assignments for each subscription.
Based on the exhibit, where should the Reader role be assigned so the audit team automatically has access to every current and future subscription under Corp?
Azure governance hierarchy
Root management group
└── Corp
├── Prod
│ ├── Sub-001
│ └── Sub-002
└── NonProd
├── Sub-101
└── Sub-102
Requirement: The audit team needs read-only access across all subscriptions that are or will be placed under Corp, without creating separate assignments for each subscription.
A
Assign Reader at the Corp management group scope.
A management group assignment inherits to all child subscriptions, so new subscriptions placed under Corp also receive the access automatically.
B
Assign Reader at the subscription scope for Sub-001.
Why wrong: This only covers one subscription and would require separate assignments for every other current and future subscription.
C
Assign Reader at the resource group scope in each subscription.
Why wrong: Resource group scope is too narrow and would not reach every subscription under the hierarchy.
D
Assign Reader directly to each resource that the audit team might review.
Why wrong: Per-resource assignments would be operationally expensive and would not satisfy the requirement for automatic inheritance.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Assign Reader at the Corp management group scope.
Assigning the Reader role at the Corp management group scope uses Azure RBAC inheritance to grant the audit team read-only access to all current and future subscriptions under that management group. Because management group scope propagates role assignments to all child subscriptions and resource groups, this ensures automatic coverage without manual updates.
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.
✓
Assign Reader at the Corp management group scope.
Why this is correct
A management group assignment inherits to all child subscriptions, so new subscriptions placed under Corp also receive the access automatically.
Related concept
Read the scenario before looking for a memorised answer.
✗
Assign Reader at the subscription scope for Sub-001.
Why it's wrong here
This only covers one subscription and would require separate assignments for every other current and future subscription.
✗
Assign Reader at the resource group scope in each subscription.
Why it's wrong here
Resource group scope is too narrow and would not reach every subscription under the hierarchy.
✗
Assign Reader directly to each resource that the audit team might review.
Why it's wrong here
Per-resource assignments would be operationally expensive and would not satisfy the requirement for automatic inheritance.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose subscription-level assignment (Option B) because they think it covers all resources in that subscription, but they overlook that the question requires access to every current and future subscription under Corp, which only management group inheritance can provide.
Detailed technical explanation
How to think about this question
Azure RBAC role assignments are inherited from management group → subscription → resource group → resource, following a hierarchical model. When a role is assigned at the management group scope, Azure's authorization engine evaluates the assignment for all descendant scopes, enabling centralized governance. In real-world scenarios, this pattern is critical for audit teams that must monitor compliance across multiple subscriptions without needing to reconfigure permissions as new subscriptions are onboarded.
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: Assign Reader at the Corp management group scope. — Assigning the Reader role at the Corp management group scope uses Azure RBAC inheritance to grant the audit team read-only access to all current and future subscriptions under that management group. Because management group scope propagates role assignments to all child subscriptions and resource groups, this ensures automatic coverage without manual updates.
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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