- A
A resource group that contains all production resources.
Why wrong: A resource group cannot span multiple subscriptions and is too small for this requirement.
- B
A management group above the production subscriptions.
This is the correct parent scope for inheritance across multiple subscriptions.
- C
A tag applied to each production resource.
Why wrong: Tags help with reporting, but they do not provide inherited policy or RBAC behavior.
- D
A single production subscription with multiple resource groups.
Why wrong: This does not cover multiple subscriptions and would force redesign of the environment.
Question 840 of 1,170
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.
Your company has separate subscriptions for development, test, and production. Security wants one baseline policy and one RBAC assignment to apply automatically to every production subscription now and in the future. What should you use?
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 management group above the production subscriptions.
B is correct because management groups allow you to apply Azure Policy and RBAC assignments hierarchically. By placing all production subscriptions under a single management group, any policy or role assignment at that level will be inherited by every current and future production subscription, meeting the requirement for automatic application without manual intervention.
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.
- ✗
A resource group that contains all production resources.
Why it's wrong here
A resource group cannot span multiple subscriptions and is too small for this requirement.
When this WOULD be correct
If the question asked for applying a policy or RBAC assignment to all resources within a single production subscription, and the requirement was to manage resources collectively, then a resource group containing all production resources could be the correct scope.
- ✓
A management group above the production subscriptions.
Why this is correct
This is the correct parent scope for inheritance across multiple subscriptions.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A tag applied to each production resource.
Why it's wrong here
Tags help with reporting, but they do not provide inherited policy or RBAC behavior.
When this WOULD be correct
A question requiring cost tracking or resource grouping across subscriptions, where the goal is to identify resources by environment (e.g., 'production') for reporting or automation, and the policy/RBAC is applied at the resource level via tag-based conditions.
- ✗
A single production subscription with multiple resource groups.
Why it's wrong here
This does not cover multiple subscriptions and would force redesign of the environment.
When this WOULD be correct
If the question required managing resources within a single subscription and applying a baseline policy and RBAC assignment to all resources in that subscription, using a single subscription with multiple resource groups would be appropriate, as policies and assignments can be applied at the subscription level.
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 management group above the production subscriptions.Correct answer▾
Why this is correct
This is the correct parent scope for inheritance across multiple subscriptions.
✗A resource group that contains all production resources.Wrong answer — click to see why▾
Why this is wrong here
A resource group is not a scope for policy or RBAC assignment that applies automatically to multiple subscriptions; it only applies to resources within that specific resource group, not to all production subscriptions.
★ When this WOULD be the correct answer
If the question asked for applying a policy or RBAC assignment to all resources within a single production subscription, and the requirement was to manage resources collectively, then a resource group containing all production resources could be the correct scope.
Why candidates choose this
Candidates may think a resource group can aggregate resources across subscriptions for policy application, but resource groups are subscription-scoped and cannot span multiple subscriptions.
✗A tag applied to each production resource.Wrong answer — click to see why▾
Why this is wrong here
Tags are not inherited by default and require explicit assignment to each resource; they cannot automatically apply a baseline policy or RBAC assignment to all production subscriptions now and in the future.
★ When this WOULD be the correct answer
A question requiring cost tracking or resource grouping across subscriptions, where the goal is to identify resources by environment (e.g., 'production') for reporting or automation, and the policy/RBAC is applied at the resource level via tag-based conditions.
Why candidates choose this
Candidates may think tags can enforce policies or RBAC universally, or they confuse tagging with inheritance mechanisms like management groups.
✗A single production subscription with multiple resource groups.Wrong answer — click to see why▾
Why this is wrong here
A single production subscription with multiple resource groups does not automatically apply policies and RBAC assignments to future production subscriptions; it only covers one subscription, not multiple separate subscriptions.
★ When this WOULD be the correct answer
If the question required managing resources within a single subscription and applying a baseline policy and RBAC assignment to all resources in that subscription, using a single subscription with multiple resource groups would be appropriate, as policies and assignments can be applied at the subscription level.
Why candidates choose this
Candidates may think that consolidating all production resources into one subscription simplifies management, overlooking the requirement to automatically cover future separate production subscriptions.
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?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse tags with policy enforcement, thinking tags can automatically apply governance, when in fact tags are only metadata and require Azure Policy to enforce tag inheritance or compliance.
Detailed technical explanation
How to think about this question
Management groups form a hierarchy up to 10,000 nodes deep, with each subscription and management group inheriting policies and RBAC from its parent. Azure Policy assignments at the management group level are evaluated using the Azure Policy engine, which applies deny, audit, or append effects to all resources in descendant subscriptions. This inheritance is enforced at resource creation and during compliance evaluation, ensuring consistent governance even as new subscriptions are added to the management group.
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.
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 |
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: A management group above the production subscriptions. — B is correct because management groups allow you to apply Azure Policy and RBAC assignments hierarchically. By placing all production subscriptions under a single management group, any policy or role assignment at that level will be inherited by every current and future production subscription, meeting the requirement for automatic application without manual intervention.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 11, 2026
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