AZ-104 Manage Azure Identities and Governance Practice Question
A team needs to understand Azure RBAC inheritance. Which two statements are correct? Select two.
⚠ Common exam trap
Watch out — candidates often confuse the direction of RBAC inheritance, mistakenly thinking a narrower scope (like resource group) applies to broader scopes (like subscription), or that assignments at a resource scope propagate to other resources in the same subscription, when in fact inheritance only flows downward from parent to child scopes.
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
✓
A role assignment at a resource group scope applies to resources inside that group.
Azure RBAC inheritance follows a hierarchical scope model: a role assignment at a resource group scope applies to all resources within that resource group, as the resource group is the parent scope for its child resources. This means any user or group assigned a role at the resource group level automatically inherits those permissions for every resource (e.g., VMs, storage accounts) inside that group, without needing separate assignments.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
A role assignment at a resource group scope applies to resources inside that group.
Why this is correct
RBAC permissions flow downward within the scope where the assignment is made. A resource group assignment automatically covers the resources inside that resource group, which is why groups are useful for managing several related resources together.
- ✓
A role assignment at subscription scope applies to all resource groups and resources in that subscription.
Why this is correct
A subscription is a broader scope than a resource group or individual resource. When a role is assigned at subscription level, all child resource groups and resources inherit that access unless a more specific condition changes the effective permissions.
- ✗
A role assignment at a resource scope automatically applies to all other resources in the subscription.
Why it's wrong here
A role assignment at an individual resource scope is limited to that specific resource only. Permissions do not propagate to sibling resources, other resources in the same resource group, or anywhere else in the subscription. To grant access across a resource group or subscription, you must assign the role at that broader scope.
When this WOULD be correct
If the question asked about Azure Policy inheritance (not RBAC), a policy assignment at a resource scope can apply to that resource only, but policies at higher scopes can affect multiple resources. However, for RBAC, this statement is never correct.
- ✗
A role assignment at management group scope applies only to the subscription where it was created.
Why it's wrong here
Management groups sit above subscriptions in the hierarchy. A role assignment at a management group scope is inherited by every subscription within that management group, not just the one where the assignment was made. This allows centralized governance across multiple subscriptions, so restricting it to a single subscription would defeat the purpose of management groups.
When this WOULD be correct
If the question stated that a role assignment at management group scope applies only to subscriptions directly under that management group (excluding child management groups), then D would be correct in that limited context.
- ✗
A role assignment at a resource group scope is broader than a subscription scope.
Why it's wrong here
In the Azure RBAC hierarchy, scopes are ordered from management group (broadest) to subscription to resource group to resource. A resource group is a container for resources, but a subscription contains multiple resource groups. Assigning a role at resource group scope only affects resources in that group, whereas a subscription scope assignment affects all resource groups and resources within that subscription, making it broader.
When this WOULD be correct
If the question asked 'Which scope is broader: resource group or subscription?' or 'Which statement about scope breadth is correct?', then stating that subscription scope is broader than resource group scope would be correct. Alternatively, if the question was about inheritance direction, saying 'A role assignment at resource group scope is broader than resource scope' would be correct.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓A role assignment at a resource group scope applies to resources inside that group.Correct answer▾
Why this is correct
RBAC permissions flow downward within the scope where the assignment is made. A resource group assignment automatically covers the resources inside that resource group, which is why groups are useful for managing several related resources together.
✗A role assignment at a resource scope automatically applies to all other resources in the subscription.Wrong answer — click to see why▾
Why this is wrong here
Azure RBAC does not cascade from a resource to other resources in the same subscription; each resource requires its own role assignment unless inherited from a higher scope.
★ When this WOULD be the correct answer
If the question asked about Azure Policy inheritance (not RBAC), a policy assignment at a resource scope can apply to that resource only, but policies at higher scopes can affect multiple resources. However, for RBAC, this statement is never correct.
Why candidates choose this
Candidates may confuse RBAC with Azure Policy inheritance or mistakenly think that permissions assigned to one resource automatically apply to all resources in the subscription.
✗A role assignment at management group scope applies only to the subscription where it was created.Wrong answer — click to see why▾
Why this is wrong here
Role assignments at management group scope apply to all subscriptions within that management group, not just the subscription where it was created.
★ When this WOULD be the correct answer
If the question stated that a role assignment at management group scope applies only to subscriptions directly under that management group (excluding child management groups), then D would be correct in that limited context.
Why candidates choose this
Candidates may confuse management group scope with subscription scope, thinking that a management group assignment is limited to a single subscription rather than inherited by all subscriptions in the hierarchy.
✗A role assignment at a resource group scope is broader than a subscription scope.Wrong answer — click to see why▾
Why this is wrong here
A role assignment at resource group scope is narrower than subscription scope because subscription scope includes all resource groups and resources within that subscription, whereas resource group scope only applies to resources within that specific group.
★ When this WOULD be the correct answer
If the question asked 'Which scope is broader: resource group or subscription?' or 'Which statement about scope breadth is correct?', then stating that subscription scope is broader than resource group scope would be correct. Alternatively, if the question was about inheritance direction, saying 'A role assignment at resource group scope is broader than resource scope' would be correct.
Why candidates choose this
Candidates may confuse the hierarchy, thinking that a resource group is a higher-level container than a subscription, or they may misinterpret 'broader' as meaning more specific or inclusive in a different context.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Quick reference
Access Control Model Comparison
| Model | Acronym | Who Controls Access? | Best For |
|---|---|---|---|
| Discretionary Access Control | DAC | Resource owner | Small teams, file shares |
| Mandatory Access Control | MAC | System / security labels | Classified govt / military |
| Role-Based Access Control | RBAC | Administrator (via roles) | Enterprise environments |
| Attribute-Based Access Control | ABAC | Policy engine (user + resource attributes) | Fine-grained, dynamic policies |
| Rule-Based Access Control | RuBAC | System rules / ACLs | Firewall rules, network ACLs |
Go deeper
Related to this question
Learn chapter
Managed Identities for Azure Resources
Key term
Group
A group is a collection of users, devices, or other objects that are assigned permissions and policies together for simplified management in identity and governance systems like Microsoft Entra ID.
Key term
RBAC
RBAC is a method of restricting network access based on the roles of individual users within an organization, where permissions are assigned to roles rather than to individuals directly.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.