- A
Restrict allowed deployment locations.
Azure Policy is designed to enforce configuration standards such as allowed locations. It can block or audit deployments that do not match the approved region list, which is a compliance requirement rather than an access-control requirement.
- B
Require a Department tag on resources.
Azure Policy can evaluate whether a tag exists and enforce that new resources include required metadata. This is useful for cost tracking, ownership reporting, and governance compliance.
- C
Give users Contributor access to the subscription.
Why wrong: Contributor is an RBAC permission that controls what a user can do, not whether a resource matches a compliance rule. Access control and policy are separate functions.
- D
Create Microsoft Entra ID users for contractors.
Why wrong: User creation is an identity task in Microsoft Entra ID, not an Azure Policy task. Policy cannot create accounts or manage identities.
- E
Place a CanNotDelete lock on every resource group.
Why wrong: A lock protects resources from deletion, but it does not enforce allowed locations or required tags. Locks and policy solve different governance problems.
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 regions that are not approved and also require a Department tag on new resources. Which two tasks are best handled by Azure Policy? Select two.
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"best"Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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
Restrict allowed deployment locations.
Azure Policy can enforce organizational standards by evaluating resource properties against business rules. Option A is correct because the 'Allowed Locations' policy definition restricts users from deploying resources to any region not explicitly permitted, directly addressing the requirement to block unapproved regions. Option B is correct because the 'Require a tag and its value on resources' policy definition can enforce that a Department tag must exist on all new resources, ensuring compliance with tagging requirements.
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.
- ✓
Restrict allowed deployment locations.
Why this is correct
Azure Policy is designed to enforce configuration standards such as allowed locations. It can block or audit deployments that do not match the approved region list, which is a compliance requirement rather than an access-control requirement.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Require a Department tag on resources.
Why this is correct
Azure Policy can evaluate whether a tag exists and enforce that new resources include required metadata. This is useful for cost tracking, ownership reporting, and governance compliance.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Give users Contributor access to the subscription.
Why it's wrong here
Contributor is an RBAC permission that controls what a user can do, not whether a resource matches a compliance rule. Access control and policy are separate functions.
- ✗
Create Microsoft Entra ID users for contractors.
Why it's wrong here
User creation is an identity task in Microsoft Entra ID, not an Azure Policy task. Policy cannot create accounts or manage identities.
- ✗
Place a CanNotDelete lock on every resource group.
Why it's wrong here
A lock protects resources from deletion, but it does not enforce allowed locations or required tags. Locks and policy solve different governance problems.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Azure Policy with Azure RBAC or resource locks, thinking that policy can manage user permissions or prevent deletion, when in fact policy is solely for enforcing rules on resource properties like location and tags.
Detailed technical explanation
How to think about this question
Azure Policy uses policy definitions and initiatives that are evaluated during resource creation and existing resource compliance checks via the Azure Resource Manager (ARM). The 'Allowed Locations' policy leverages the 'Microsoft.Authorization/policyDefinitions' resource type with a 'policyRule' that compares the resource location against a list of allowed regions, and it can be applied at management group, subscription, or resource group scope. Tag requirements are enforced through the 'append' or 'deny' effect, where the policy can automatically add missing tags or block creation if tags are absent, ensuring governance without manual intervention.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
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: Restrict allowed deployment locations. — Azure Policy can enforce organizational standards by evaluating resource properties against business rules. Option A is correct because the 'Allowed Locations' policy definition restricts users from deploying resources to any region not explicitly permitted, directly addressing the requirement to block unapproved regions. Option B is correct because the 'Require a tag and its value on resources' policy definition can enforce that a Department tag must exist on all new resources, ensuring compliance with tagging requirements.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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