AZ-900 Describe Azure management and governance Practice Question
Which Azure feature enables centralized governance for multiple Azure AD tenants in a managed service provider (MSP) scenario?
⚠ Common exam trap
Many candidates confuse Azure Management Groups (which organize subscriptions within a single tenant) with Azure Lighthouse (which enables cross-tenant management), leading candidates to pick A when the question explicitly mentions multiple Azure AD tenants.
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
✓
Azure Lighthouse
Azure Lighthouse enables centralized governance across multiple Azure AD tenants by allowing managed service providers (MSPs) to manage resources in customer tenants from their own tenant using delegated administration. It uses Azure Resource Manager (ARM) with delegated access, eliminating the need for separate credentials or VPNs, and supports cross-tenant management at scale.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Azure Management Groups
Why it's wrong here
Management Groups provide a hierarchy for organizing and governing subscriptions within a single Azure AD tenant, enabling consistent policy, access, and compliance across those subscriptions. However, they do not enable cross-tenant delegation or management of another organization's subscriptions, which is the core capability that Lighthouse offers for managed service providers.
- ✓
Azure Lighthouse
Why this is correct
Azure Lighthouse is the correct service for MSPs because it uses Azure Delegated Resource Management to enable secure, cross-tenant management of customer resources at scale. By onboarding customer subscriptions or resource groups to Lighthouse, service providers can manage those resources from their own Azure AD tenant using built-in identity and access controls, without needing to create guest accounts or trust relationships. It supports automation, monitoring, and governance across multiple customers from a single control plane.
- ✗
Azure AD B2B guest access
Why it's wrong here
Azure AD B2B guest access allows external users to be invited into a tenant as guests for specific application or resource access, facilitating collaboration without granting full management rights. It is not designed for delegated cross-tenant management of subscriptions, and it would require manual user creation and role assignment for each resource. Lighthouse, in contrast, provides a scalable, repeatable onboarding and management model for entire customer environments.
- ✗
Azure Enterprise Agreement multi-tenant billing
Why it's wrong here
Azure Enterprise Agreement multi-tenant billing is a financial agreement that consolidates Azure usage and billing across an organization's tenants, offering custom pricing and invoicing under one contract. While it may involve multiple tenants for billing purposes, it does not provide any delegated resource management or cross-tenant control plane capabilities, which is the functionality required in this MSP scenario.
Go deeper
Related to this question
Learn chapter
Azure Cost Management and Billing
Key term
ARM
ARM stands for Azure Resource Manager, the management layer that enables you to create, update, and delete resources in your Azure account.
Key term
Tenant
A dedicated and isolated instance of Microsoft Entra ID that an organization receives when signing up for a Microsoft cloud service.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.