- A
Deny
Why wrong: Deny prevents the creation of the VM entirely if it does not meet the condition. The requirement is to automatically correct the tag, not block creation, so Deny is incorrect.
- B
Audit
Why wrong: Audit only logs non-compliant resources for reporting; it does not take any automatic corrective action. The requirement is to automatically correct the tag, so Audit is incorrect.
- C
Modify
Modify can add or change tags on a resource during creation or through remediation tasks. This meets the requirement to automatically set the tag to the correct value without blocking creation.
- D
DeployIfNotExists
Why wrong: DeployIfNotExists is used to deploy an additional resource (e.g., a network security group) to the resource's location when the resource is created. It is not designed to modify properties like tags on the existing resource, so it is incorrect.
AZ-900 Describe Azure management and governance Practice Question
This AZ-900 practice question tests your understanding of describe azure management 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 has a governance requirement that every Azure virtual machine must have a tag named 'CostCenter' with the value 'Unassigned'. If a user creates a VM without the tag, or with a different value for that tag, the tag should be automatically corrected to 'Unassigned' immediately upon resource creation. The IT team is writing an Azure Policy definition to enforce this. Which Policy effect should they use?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"immediately / without restart"Why it matters: Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
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
Modify
The Modify effect is correct because it automatically corrects non-compliant tags (missing or wrong value) to the specified value ('Unassigned') during resource creation or update, without blocking the deployment. This satisfies the requirement for immediate, automatic remediation without denying the VM creation entirely.
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.
- ✗
Deny
Why it's wrong here
Deny prevents the creation of the VM entirely if it does not meet the condition. The requirement is to automatically correct the tag, not block creation, so Deny is incorrect.
- ✗
Audit
Why it's wrong here
Audit only logs non-compliant resources for reporting; it does not take any automatic corrective action. The requirement is to automatically correct the tag, so Audit is incorrect.
- ✓
Modify
Why this is correct
Modify can add or change tags on a resource during creation or through remediation tasks. This meets the requirement to automatically set the tag to the correct value without blocking creation.
Clue confirmation
The clue word "immediately / without restart" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
DeployIfNotExists
Why it's wrong here
DeployIfNotExists is used to deploy an additional resource (e.g., a network security group) to the resource's location when the resource is created. It is not designed to modify properties like tags on the existing resource, so it is incorrect.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose Deny thinking it enforces compliance by blocking non-compliant resources, but the question explicitly requires automatic correction, not rejection, making Modify the only effect that performs the required remediation.
Detailed technical explanation
How to think about this question
The Modify effect uses a 'policy rule' with a 'then' section that specifies the 'operation' (e.g., 'addOrReplace') and the 'value' to set. Under the hood, Azure Policy triggers a remediation task that invokes the resource provider's API to update the resource after creation, ensuring the tag is applied even if the user omitted it. This effect is ideal for scenarios where you want to enforce a default value without blocking the user's workflow.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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-900 question test?
Describe Azure management and governance — This question tests Describe Azure management and governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Modify — The Modify effect is correct because it automatically corrects non-compliant tags (missing or wrong value) to the specified value ('Unassigned') during resource creation or update, without blocking the deployment. This satisfies the requirement for immediate, automatic remediation without denying the VM creation entirely.
What should I do if I get this AZ-900 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: "immediately / without restart". Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This AZ-900 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-900 exam.
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