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A large enterprise manages Azure subscriptions for three business units: Sales, Research & Development, and Information Technology. Each business unit has its own Azure subscription. The central governance team needs to ensure that a specific set of Azure Policy definitions (e.g., restricting allowed regions to 'East US' only) is applied to all current and future subscriptions belonging to these three business units. The team wants to minimize administrative overhead and ensure that any new subscription created for a business unit automatically inherits the same policies. Which Azure feature should the team use to achieve this goal?

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A large enterprise manages Azure subscriptions for three business units: Sales, Research & Development, and Information Technology. Each business unit has its own Azure subscription. The central governance team needs to ensure that a specific set of Azure Policy definitions (e.g., restricting allowed regions to 'East US' only) is applied to all current and future subscriptions belonging to these three business units. The team wants to minimize administrative overhead and ensure that any new subscription created for a business unit automatically inherits the same policies. Which Azure feature should the team use to achieve this goal?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

Assign each policy definition individually to every subscription.

This approach is manual, time-consuming, and does not scale. New subscriptions would require separate policy assignments; inheritance does not apply.

B

Best answer

Create a management group for each business unit, place the corresponding subscription inside each management group, and assign the policy set to each management group.

Management groups allow policy assignment at the group level. Subscriptions inside the group automatically inherit the assigned policies, including future subscriptions placed in that management group. This minimizes administrative overhead.

C

Distractor review

Create a single resource group at the tenant root level and assign the policy definitions to that resource group.

Resource groups are containers for resources (e.g., VMs, storage accounts), not for subscriptions. A policy cannot be assigned to a resource group at the tenant root to apply to multiple subscriptions.

D

Distractor review

Use Azure Blueprints to deploy a new subscription with the policies, then manually move each existing subscription into the blueprint's management group.

Azure Blueprints are designed to orchestrate the deployment of a consistent environment (including policies) for a single subscription or management group, but they are not the most efficient tool for simply applying policies to existing subscriptions. Manual moving of subscriptions is required and the description adds unnecessary complexity.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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.

Related practice questions

Related AZ-900 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

Question 1

A developer is building a serverless application that requires integration with an on-premises SQL Server database for real-time data processing. The on-premises network is connected to Azure via a site-to-site VPN. Which Azure service would allow the function to securely access the on-premises database without exposing it to the public internet?

Question 2

A solutions architect is designing a storage solution for a large media company. The company needs to store video files that are accessed infrequently but must be retained for several years for compliance. Which two Azure storage options meet these requirements? (Select two.)

Question 3

A company deploys a multi-tier application using Azure virtual machines. The web tier VMs must be evenly distributed across two distinct data centers within an Azure region to avoid a single point of failure from an infrastructure outage. Which Azure construct should they use to meet this requirement?

Question 4

A company wants to enforce a set of security policies across all their Azure subscriptions. They have created several individual policy definitions. Which Azure construct should they use to group these policies together and assign them as a single package?

Question 5

A company deploys a line-of-business application on an Azure virtual machine. The IT team wants to ensure the application remains secure. According to the shared responsibility model, which of the following security tasks is the sole responsibility of the customer (the company)?

Question 6

A company develops a web API that runs on Azure App Service. The development team wants to deploy a new version of the API to a staging environment, run integration tests against it, and then gradually shift production traffic to the new version. If any issues are detected, they want to immediately roll back to the previous version without redeploying. Which Azure App Service feature should the team use to meet these requirements?

FAQ

Questions learners often ask

What does this AZ-900 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Create a management group for each business unit, place the corresponding subscription inside each management group, and assign the policy set to each management group. — Management groups provide a hierarchical structure to organize Azure subscriptions. When a policy is assigned at the management group scope, it is automatically inherited by all subscriptions within that management group. This allows efficient governance across multiple subscriptions without manual assignment per subscription.

What should I do if I get this AZ-900 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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