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.
A company wants to stop users from creating resources in any Azure region except East US and West US across all subscriptions. Which Azure feature should be used to enforce this requirement?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
An Azure Policy assignment with a Deny effect at the management group scope
Azure Policy with a Deny effect at the management group scope is the correct choice because it can enforce a location constraint across all subscriptions under that management group. The Deny effect prevents the creation of resources in non-compliant regions at the time of deployment, ensuring that only East US and West US are allowed. This is a governance control that applies to all subscriptions within the scope, making it the ideal solution for this requirement.
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.
✗
An Azure RBAC role assignment
Why it's wrong here
RBAC controls who can perform actions, but it does not enforce allowed regions for deployments.
✓
An Azure Policy assignment with a Deny effect at the management group scope
Why this is correct
Azure Policy with a Deny effect can block noncompliant deployments, and management group scope applies the rule across subscriptions in the hierarchy.
Related concept
Read the scenario before looking for a memorised answer.
✗
A CanNotDelete resource lock on the subscriptions
Why it's wrong here
A lock prevents deletion or changes to locked resources, but it does not restrict which region new resources can use.
✗
A tag inheritance rule on the management group
Why it's wrong here
Tags help with organization and reporting, but they do not enforce deployment location compliance.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Azure RBAC (who can do what) with Azure Policy (what can be done), leading them to select RBAC role assignments instead of the correct policy-based governance control.
Detailed technical explanation
How to think about this question
Azure Policy uses a policy definition with a built-in effect called 'Deny' that evaluates resource creation requests against the Azure Resource Manager (ARM) API. When a policy is assigned at the management group scope, it applies to all child subscriptions and resource groups, and the Deny effect returns an HTTP 403 Forbidden status for any non-compliant deployment. This is enforced at the ARM layer before the resource is provisioned, making it a proactive control rather than a reactive audit.
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: An Azure Policy assignment with a Deny effect at the management group scope — Azure Policy with a Deny effect at the management group scope is the correct choice because it can enforce a location constraint across all subscriptions under that management group. The Deny effect prevents the creation of resources in non-compliant regions at the time of deployment, ensuring that only East US and West US are allowed. This is a governance control that applies to all subscriptions within the scope, making it the ideal solution for this requirement.
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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