- A
Configure RBAC to deny resource creation permissions in all subscriptions
Why wrong: RBAC deny assignments don't restrict by location; Azure Policy with 'Allowed locations' enforces geographic restrictions.
- B
Assign 'Allowed locations' Azure Policy at the Management Group level
Management Group policy assignment propagates to all child subscriptions, providing enterprise-wide location enforcement.
- C
Create separate 'Allowed locations' policies in each subscription
Why wrong: This works but is not scalable; Management Group assignment achieves the same result for all subscriptions at once.
- D
Use Azure Blueprints to restrict locations in each new subscription
Why wrong: Blueprints require explicit assignment per subscription; Management Group Policy auto-applies to all subscriptions.
Quick Answer
The answer is to assign the 'Allowed locations' Azure Policy at the Management Group level, as this is the most scalable way to restrict resource creation to approved geographic locations across subscriptions. By applying the policy to a management group, you create a single, centralized governance rule that automatically enforces location restrictions on every subscription within that group, including any new subscriptions added later. This approach is far more efficient than assigning the policy individually to each subscription, which would require manual updates and introduce risk of inconsistency. On the Microsoft Azure Fundamentals AZ-900 exam, this scenario tests your understanding of Azure Policy’s scope and management groups as a hierarchical governance tool. A common trap is choosing to assign the policy at the subscription level, which lacks scalability, or confusing Azure Policy with Azure RBAC. Remember the memory tip: “Manage once at the group, cover all subscriptions in the loop.”
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.
An organization wants to ensure that no one can create Azure resources outside of approved geographic locations across all of their subscriptions. What is the most scalable way to enforce this?
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 'Allowed locations' Azure Policy at the Management Group level
Azure Policy at the Management Group level allows you to define a single 'Allowed locations' policy that applies to all subscriptions within that group, ensuring consistent enforcement across the entire organization. This approach is the most scalable because it centralizes governance, automatically covering new subscriptions added to the management group 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.
- ✗
Configure RBAC to deny resource creation permissions in all subscriptions
Why it's wrong here
RBAC deny assignments don't restrict by location; Azure Policy with 'Allowed locations' enforces geographic restrictions.
- ✓
Assign 'Allowed locations' Azure Policy at the Management Group level
Why this is correct
Management Group policy assignment propagates to all child subscriptions, providing enterprise-wide location enforcement.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create separate 'Allowed locations' policies in each subscription
Why it's wrong here
This works but is not scalable; Management Group assignment achieves the same result for all subscriptions at once.
- ✗
Use Azure Blueprints to restrict locations in each new subscription
Why it's wrong here
Blueprints require explicit assignment per subscription; Management Group Policy auto-applies to all subscriptions.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy with RBAC or Azure Blueprints, leading candidates to choose options that manage permissions or deployments instead of the centralized, policy-based enforcement that Azure Policy provides at the management group scope.
Detailed technical explanation
How to think about this question
Azure Policy at the Management Group level leverages policy inheritance, where policies assigned to a management group automatically apply to all child subscriptions and resource groups. The 'Allowed locations' policy uses the 'policyRule' with 'then' effect 'Deny', which blocks any resource creation outside the specified regions at the Azure Resource Manager (ARM) level, even before the resource is provisioned. This is more efficient than subscription-level policies because it reduces administrative overhead and ensures consistent governance as the organization scales.
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.
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: Assign 'Allowed locations' Azure Policy at the Management Group level — Azure Policy at the Management Group level allows you to define a single 'Allowed locations' policy that applies to all subscriptions within that group, ensuring consistent enforcement across the entire organization. This approach is the most scalable because it centralizes governance, automatically covering new subscriptions added to the management group without manual intervention.
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.
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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