The answer is to create an exclusion for that subscription in the policy assignment. This works because Azure Policy assignments at a management group scope apply by default to all child subscriptions, but you can configure an exclusion to remove a specific subscription from the policy’s evaluation, effectively allowing it to bypass the deny effect for missing tags. On the AZ-900 exam, this scenario tests your understanding of policy inheritance and scope management—a common trap is assuming you must reassign the policy at a lower scope rather than simply excluding the subscription. Remember that exclusions are set directly on the assignment itself, not on the policy definition. A helpful memory tip: think of an exclusion as a “skip this one” checkbox on the policy assignment, letting you carve out a single subscription without altering the broader rule.
AZ-900 Describe Azure management and governance Practice Question
This AZ-900 practice question tests your understanding of describe azure management and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 multiple subscriptions. They want to apply a policy that denies creation of resources without a specific tag at the top-level management group. Later, they need to allow a specific subscription to create resources without that tag. What should they do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create an exclusion for that subscription in the policy assignment.
Azure Policy allows you to assign policies at the management group scope, which applies to all child subscriptions. When you need to exempt a specific subscription from a policy effect (like 'Deny'), you can configure an exclusion on the policy assignment at the management group level. This exclusion removes the policy evaluation for that subscription, allowing resources to be created without the required tag.
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.
✗
Assign a different policy at the subscription level that allows untagged resources.
Why it's wrong here
Assigning a conflicting policy could cause evaluation issues; exclusions are the intended method.
✓
Create an exclusion for that subscription in the policy assignment.
Why this is correct
Exclusions in Azure Policy allow you to exempt a child scope from the policy effect.
Related concept
Read the scenario before looking for a memorised answer.
✗
Modify the top-level policy to include an exemption.
Why it's wrong here
Exemptions are for individual resources, not entire scopes like subscriptions.
✗
Remove the subscription from the management group.
Why it's wrong here
Removing the subscription changes its scope but does not allow untagged resources; also it may break governance.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing 'exclusion' (which removes a scope from policy evaluation) with 'exemption' (which marks a resource as compliant despite non-compliance) or thinking a lower-level policy assignment can override a higher-level 'Deny' effect.
Detailed technical explanation
How to think about this question
Under the hood, Azure Policy evaluation follows a hierarchical inheritance model: policies assigned at a management group scope are automatically applied to all descendant subscriptions and resource groups. Exclusions are defined as part of the policy assignment's 'excluded scopes' property, which tells the policy engine to skip evaluation for those specific scopes. This is distinct from exemptions, which mark resources as compliant or waive enforcement but still evaluate the policy. In real-world scenarios, exclusions are commonly used to allow development or testing subscriptions to bypass strict tagging requirements while maintaining governance for production environments.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-900 question in full detail.
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: Create an exclusion for that subscription in the policy assignment. — Azure Policy allows you to assign policies at the management group scope, which applies to all child subscriptions. When you need to exempt a specific subscription from a policy effect (like 'Deny'), you can configure an exclusion on the policy assignment at the management group level. This exclusion removes the policy evaluation for that subscription, allowing resources to be created without the required tag.
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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Question Discussion
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