Courseiva
Manage Azure Identities and GovernancemediumMultiple ChoiceObjective-mapped

AZ-104 Manage Azure Identities and Governance Practice Question

Your company has two subscriptions named Dev-Sub and Prod-Sub. A new administrator must be able to create resource groups only in Dev-Sub and must not have any permissions in Prod-Sub. What should you do?

⚠ Common exam trap

A common mix-up: candidates confuse the scope required to create resource groups (subscription-level write permission) with the ability to manage existing resource groups (resource group-level permission), leading them to incorrectly choose Option C (Owner at resource group scope) which only allows management of that specific resource group, not creation of new ones.

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

Assign Contributor to the administrator at the Dev-Sub scope.

Assigning the Contributor role at the Dev-Sub scope grants the administrator full permissions to create and manage resource groups within that subscription, while the role assignment is scoped exclusively to Dev-Sub, ensuring no permissions in Prod-Sub. Azure RBAC is hierarchical, so a role assigned at a subscription scope applies to all resource groups within it, but does not cross subscription boundaries. This meets the requirement of allowing resource group creation only in Dev-Sub with no access to Prod-Sub.

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 Contributor to the administrator at the management group scope.

    Why it's wrong here

    A management group scope is an inherited container; Contributor assigned there would propagate to every subscription nested under that management group, which in a typical enterprise includes both Dev-Sub and Prod-Sub, thereby over-permissioning the administrator. Even in a contrived setup where only Dev-Sub sits beneath the management group, such a high-level assignment is administratively risky and violates the principle of least privilege, because any future subscription added to that management group would automatically also receive Contributor. The requirement is explicitly for Dev-Sub only, so the assignment must be scoped at the subscription level rather than the management group.

    When this WOULD be correct

    This option would be correct if the requirement was to grant the administrator the ability to create resource groups in all subscriptions under a management group (e.g., both Dev-Sub and Prod-Sub) and no restriction on Prod-Sub permissions existed.

  • Assign Contributor to the administrator at the Dev-Sub scope.

    Why this is correct

    Assigning Contributor at the Dev-Sub subscription scope grants the administrator permission to create and manage all resource types within that subscription, including resource groups and any resources inside them, without granting access to other subscriptions. Contributor deliberately excludes the 'Manage Access' permission, so the administrator cannot delegate roles to others, aligning with the principle of least privilege. This scope exactly matches the requirement to administer Dev resources, and because the role assignment is scoped to the subscription, it cannot affect Prod-Sub or any other Azure scope.

  • Assign Owner to the administrator at the resource group scope in Dev-Sub.

    Why it's wrong here

    Owner at a resource group scope is doubly problematic: Owner includes the 'Manage Access' ability, allowing the administrator to grant roles to themselves or others, which is far greater privilege than the required Contributor role provides. Additionally, the resource group scope may not exist at the time of the assignment, because the administrator must first have permission at the subscription level to even create the resource group, creating a circular dependency. Even if the resource group already existed, this scope would restrict the administrator to only that one resource group, preventing them from managing other resource groups or resources in Dev-Sub that need oversight.

    When this WOULD be correct

    This option would be correct if the requirement was for the administrator to have full control over a specific resource group in Dev-Sub, including the ability to manage role assignments and resources within that group, and no restrictions on permissions in other scopes.

  • Assign Reader to the administrator at the Prod-Sub scope and Contributor at the tenant root group.

    Why it's wrong here

    Reader at the Prod-Sub scope is unnecessary because the administrator's duties are confined to Dev resources; read-only access to production is both irrelevant and potentially a data exposure risk. More critically, Contributor at the tenant root group ('/') would grant contributor permissions to every management group, subscription, resource group, and resource across the entire Azure tenant, completely circumventing the intended restriction to Dev-Sub. Such a wide scope is among the most dangerous RBAC misconfigurations possible, as it effectively turns the administrator into a contributor over the whole organization, far beyond any legitimate requirement.

    When this WOULD be correct

    If the requirement were to allow the administrator to create resource groups in Dev-Sub while having read-only access to Prod-Sub (e.g., for monitoring purposes), then assigning Reader at Prod-Sub and Contributor at the tenant root group (or Dev-Sub) would be appropriate.

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.

Assign Contributor to the administrator at the Dev-Sub scope.Correct answer

Why this is correct

Assigning Contributor at the Dev-Sub subscription scope grants the administrator permission to create and manage all resource types within that subscription, including resource groups and any resources inside them, without granting access to other subscriptions. Contributor deliberately excludes the 'Manage Access' permission, so the administrator cannot delegate roles to others, aligning with the principle of least privilege. This scope exactly matches the requirement to administer Dev resources, and because the role assignment is scoped to the subscription, it cannot affect Prod-Sub or any other Azure scope.

Assign Contributor to the administrator at the management group scope.Wrong answer — click to see why

Why this is wrong here

Assigning Contributor at the management group scope grants permissions to all subscriptions under that management group, including Prod-Sub, which violates the requirement that the administrator must have no permissions in Prod-Sub.

★ When this WOULD be the correct answer

This option would be correct if the requirement was to grant the administrator the ability to create resource groups in all subscriptions under a management group (e.g., both Dev-Sub and Prod-Sub) and no restriction on Prod-Sub permissions existed.

Why candidates choose this

Candidates may think that assigning a role at a higher scope (management group) is more efficient and still allows creating resource groups in Dev-Sub, overlooking that it also grants permissions to other subscriptions.

Assign Owner to the administrator at the resource group scope in Dev-Sub.Wrong answer — click to see why

Why this is wrong here

The Owner role at the resource group scope in Dev-Sub grants full access, including the ability to assign permissions, which exceeds the requirement to only create resource groups. Additionally, it does not prevent the administrator from gaining permissions in Prod-Sub through inheritance if the management group hierarchy includes both subscriptions.

★ When this WOULD be the correct answer

This option would be correct if the requirement was for the administrator to have full control over a specific resource group in Dev-Sub, including the ability to manage role assignments and resources within that group, and no restrictions on permissions in other scopes.

Why candidates choose this

Candidates may think that assigning Owner at the resource group scope is sufficient to allow resource group creation within that group, but they overlook that the Contributor role is the minimum required for creating resource groups, and Owner provides unnecessary elevated privileges.

Assign Reader to the administrator at the Prod-Sub scope and Contributor at the tenant root group.Wrong answer — click to see why

Why this is wrong here

Assigning Reader at Prod-Sub scope grants read-only permissions in Prod-Sub, violating the requirement that the administrator must have no permissions in Prod-Sub. Additionally, assigning Contributor at the tenant root group would grant Contributor access to all subscriptions, including Prod-Sub.

★ When this WOULD be the correct answer

If the requirement were to allow the administrator to create resource groups in Dev-Sub while having read-only access to Prod-Sub (e.g., for monitoring purposes), then assigning Reader at Prod-Sub and Contributor at the tenant root group (or Dev-Sub) would be appropriate.

Why candidates choose this

Candidates may think that combining a restrictive role (Reader) on Prod-Sub with a broader role (Contributor) at a higher scope (tenant root group) would limit permissions, but they overlook that the higher scope grants Contributor to all subscriptions, including Prod-Sub.

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

ModelAcronymWho Controls Access?Best For
Discretionary Access ControlDACResource ownerSmall teams, file shares
Mandatory Access ControlMACSystem / security labelsClassified govt / military
Role-Based Access ControlRBACAdministrator (via roles)Enterprise environments
Attribute-Based Access ControlABACPolicy engine (user + resource attributes)Fine-grained, dynamic policies
Rule-Based Access ControlRuBACSystem rules / ACLsFirewall rules, network ACLs

About these practice questions

One of 1,049 original AZ-104 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →

How Courseiva writes practice questions · Editorial policy

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.