The answer is to assign the Contributor role at the Dev-Sub subscription scope. This works because Azure RBAC permissions are inherited downward through the hierarchy, meaning a role assigned at the subscription level applies to all resource groups within that subscription, but it does not cross over to other subscriptions like Prod-Sub. The Contributor role specifically grants full management rights, including the ability to create resource groups, while preventing any access to scopes where the role is not assigned. On the AZ-104 exam, this question tests your understanding of scope inheritance and the critical distinction between subscription-level and resource group-level assignments. A common trap is thinking you need a custom role or a deny assignment, but the simplest solution is to leverage built-in roles at the correct scope. Memory tip: think of Azure RBAC like a family tree—permissions flow down to children (resource groups) but never sideways to cousins (other subscriptions).
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 two Azure subscriptions named Dev-Sub and Prod-Sub. You need to ensure that a user can create resource groups only in Dev-Sub and nowhere else. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Assign the Contributor role at the Dev-Sub subscription scope.
The Contributor role allows a user to create and manage resources, including resource groups, within the assigned scope. By assigning this role at the Dev-Sub subscription scope, the user gains the necessary permissions to create resource groups only in that subscription, as Azure RBAC permissions are inherited downward but not across sibling scopes. This ensures the user cannot create resource groups in Prod-Sub or any other subscription.
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 the Contributor role at the Dev-Sub subscription scope.
Why this is correct
Contributor at the Dev-Sub scope allows resource group creation within that subscription only.
Related concept
Read the scenario before looking for a memorised answer.
✗
Assign the Owner role at the tenant root scope.
Why it's wrong here
Tenant root scope is much broader than required and Owner is excessively permissive.
✗
Assign the Reader role at the Dev-Sub subscription scope.
Why it's wrong here
Reader does not allow creating resource groups.
✗
Assign the Contributor role at the management group scope that contains both subscriptions.
Why it's wrong here
That would also allow actions in Prod-Sub, which violates the requirement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the Contributor role with the Reader role, or incorrectly assume that assigning a role at a management group scope can be used to limit permissions to a single subscription, not realizing that management group scope inheritance applies to all child subscriptions.
Detailed technical explanation
How to think about this question
Azure RBAC uses a hierarchical inheritance model where permissions assigned at a higher scope (e.g., management group or subscription) are inherited by all child scopes (e.g., resource groups and resources). The Contributor role includes the Microsoft.Resources/subscriptions/resourceGroups/write action, which is required to create resource groups. To restrict permissions to a single subscription, the assignment must be made at that subscription scope, not at a parent management group or tenant scope, as inheritance would propagate the permission to other subscriptions.
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 the Contributor role at the Dev-Sub subscription scope. — The Contributor role allows a user to create and manage resources, including resource groups, within the assigned scope. By assigning this role at the Dev-Sub subscription scope, the user gains the necessary permissions to create resource groups only in that subscription, as Azure RBAC permissions are inherited downward but not across sibling scopes. This ensures the user cannot create resource groups in Prod-Sub or any other subscription.
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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