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AZ-104 · Domain 1: Manage Azure identities and governance · 24% of the exam

Task 1.3: Manage Azure subscriptions and governance

Azure Policy, resource locks, tags, resource groups, subscriptions, cost alerts, budgets and Advisor recommendations, and management groups.

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Sample questions

Try each one before opening the answer. Every option is explained, with the Microsoft documentation page that proves it.

Question 1 · choose 1

Every resource group already has a CostCenter tag. You need each new resource to get the CostCenter value of its resource group when it's created without the tag, and you must not overwrite a value someone set on purpose. Which built-in policy should you assign?

  1. ARequire a tag on resources
  2. BInherit a tag from the resource group if missing
  3. CInherit a tag from the resource group
  4. DAdd a tag to resources
Show the answer and why
  • ARequire a tag on resources

    Incorrect

    This deny policy blocks resources without the tag instead of adding the value, so deployments without it would fail.

  • BInherit a tag from the resource group if missing

    Correct

    This modify policy adds the resource group's tag value to a resource only when the resource doesn't already have that tag.

  • CInherit a tag from the resource group

    Incorrect

    This variant applies the resource group's value even when the resource already has the tag, overwriting values set on purpose.

  • DAdd a tag to resources

    Incorrect

    This policy adds a fixed name and value you supply in the assignment, not the value each resource group carries.

The "if missing" inherit policy copies the parent's value only onto resources without the tag; the plain inherit policy replaces existing values too.

Question 2 · choose 1

An administrator added a lock to resource group RG-Ops to stop accidental changes. Since then, operators who hold Virtual Machine Contributor can't restart or start the VMs in RG-Ops, although the VMs keep running. What explains this?

  1. AThe lock is CanNotDelete, which blocks power operations
  2. BVirtual Machine Contributor lacks the restart action
  3. CThe operators also need Reader on the resource group
  4. DThe lock is ReadOnly, which blocks POST calls such as restart
Show the answer and why
  • AThe lock is CanNotDelete, which blocks power operations

    Incorrect

    A CanNotDelete lock lets authorized users read and modify a resource; it blocks only deletion.

  • BVirtual Machine Contributor lacks the restart action

    Incorrect

    The role includes VM power operations; the operators could restart the VMs before the lock was added.

  • CThe operators also need Reader on the resource group

    Incorrect

    Virtual Machine Contributor already includes read access to the VMs, so adding Reader changes nothing for start or restart.

  • DThe lock is ReadOnly, which blocks POST calls such as restart

    Correct

    A ReadOnly lock blocks the POST requests that start and restart VMs, so even authorized users can't run them.

Locks act on the control plane. A ReadOnly lock acts like limiting users to Reader and blocks POST operations, so starting or restarting a VM in a locked resource group fails; a CanNotDelete lock only prevents deletion.

Question 3 · choose 1

You tag resource group RG-Sales with Department=Sales and then group costs by the Department tag in cost analysis. The resources inside RG-Sales show up untagged. What is the reason?

  1. AResources don't inherit the tags of their resource group
  2. BCost analysis reads tags from subscriptions, not resource groups
  3. CTag values are case-sensitive in cost analysis filters
  4. DA ReadOnly lock on RG-Sales keeps tags from reaching its resources
Show the answer and why
  • AResources don't inherit the tags of their resource group

    Correct

    A tag on a resource group isn't applied to the resources in it; you need a tag policy to copy it, or tag inheritance in Cost Management to apply it to their usage records.

  • BCost analysis reads tags from subscriptions, not resource groups

    Incorrect

    Cost analysis groups by the tags on each resource's costs; these resources simply carry no Department tag.

  • CTag values are case-sensitive in cost analysis filters

    Incorrect

    Values are case-sensitive, but a casing mismatch wouldn't leave every resource without a tag.

  • DA ReadOnly lock on RG-Sales keeps tags from reaching its resources

    Incorrect

    No lock is involved here, and a lock doesn't decide whether a resource group's tags reach the resources inside it; they never do on their own.

Tags applied to a resource group or subscription aren't inherited by the resources inside it. To get the tag onto resources, assign a tag policy such as one of the inherit definitions, or tag the resources directly. For cost reporting alone, the tag inheritance setting in Cost Management applies resource group tags to the child resources' usage records.

Question 4 · choose 1

You must move VM1 to another subscription in the same tenant. VM1 is in RG-Compute, its managed disks and NIC are in RG-Storage and RG-Net. The validation fails. What should you do first?

  1. AMove the disks and NIC into RG-Compute, then move them with VM1
  2. BRegister the Microsoft.Compute provider in the source subscription
  3. CChange the target subscription's tenant to match the source
  4. DUse Azure Resource Mover to move VM1 and its disks
Show the answer and why
  • AMove the disks and NIC into RG-Compute, then move them with VM1

    Correct

    Across subscriptions, a resource and its dependent resources must sit in the same resource group and move together.

  • BRegister the Microsoft.Compute provider in the source subscription

    Incorrect

    Registration matters in the destination subscription, and the source already runs the VM, so it's registered there.

  • CChange the target subscription's tenant to match the source

    Incorrect

    Both subscriptions are already in the same tenant, which is a requirement the move meets.

  • DUse Azure Resource Mover to move VM1 and its disks

    Incorrect

    Switching tools doesn't fix the failed validation; for a subscription move the dependent resources must first sit in one resource group.

Moving to another subscription is a three-step process: gather dependent resources into one resource group, move them together, then redistribute them if you like. The subscriptions must share a tenant and the destination must be registered for the resource provider.

Question 5 · choose 1

A development subscription has a monthly budget of USD 2,000. When actual cost reaches 100 percent, its VMs must be shut down automatically. What should you configure?

  1. ASet the budget's threshold to 100 percent; the budget stops the VMs
  2. BA spending limit on the subscription
  3. CAn action group on the budget alert that runs an automation runbook
  4. DAn Azure Policy assignment with the deny effect
Show the answer and why
  • ASet the budget's threshold to 100 percent; the budget stops the VMs

    Incorrect

    Budget thresholds send notifications only; resources aren't affected and consumption isn't stopped.

  • BA spending limit on the subscription

    Incorrect

    A spending limit exists only on subscriptions with credits, such as free trials, and disables the whole subscription rather than stopping VMs.

  • CAn action group on the budget alert that runs an automation runbook

    Correct

    A budget at subscription scope can call an action group, which can run a runbook or Logic App that stops the VMs.

  • DAn Azure Policy assignment with the deny effect

    Incorrect

    Deny blocks noncompliant create or update requests; it can't react to cost or stop running VMs.

Budgets evaluate cost and notify, but don't affect resources. For a subscription or resource group budget you can attach an action group, and the action group can start automation such as a runbook that shuts VMs down.

Question 6 · choose 2

A subscription sits directly under the Tenant Root Group. You must move it under the management group MG-Corp. Which two permissions do you need? (Choose TWO.)

  1. AOwner role on the subscription
  2. BOwner role on the Tenant Root Group
  3. CAccount owner of the subscription's billing account
  4. DManagement Group Contributor on MG-Corp
  5. EGlobal Administrator role in Microsoft Entra ID
Show the answer and why
  • AOwner role on the subscription

    Correct

    Moving a subscription needs the Owner role (or equivalent write rights) on the child subscription.

  • BOwner role on the Tenant Root Group

    Incorrect

    When the current parent is the root management group, you don't need permissions on it to move the subscription away.

  • CAccount owner of the subscription's billing account

    Incorrect

    Billing ownership controls invoices and payment, not where the subscription sits in the management group hierarchy.

  • DManagement Group Contributor on MG-Corp

    Correct

    You need write access on the target parent management group, which Management Group Contributor provides.

  • EGlobal Administrator role in Microsoft Entra ID

    Incorrect

    The move checks Azure permissions on the subscription and the management groups, which this directory role isn't.

To move a subscription you need write rights on the subscription (Owner) and on the target parent management group, and on the current parent unless it's the root management group, which is the exception here.

Question 7 · choose 1

You must apply eight related security policies to several subscriptions and track them as one compliance goal. What should you create?

  1. AA management group for each policy
  2. BAn initiative definition that contains the eight policies
  3. CA resource lock with the eight policies attached
  4. DEight separate policy assignments per subscription
Show the answer and why
  • AA management group for each policy

    Incorrect

    Management groups organize subscriptions; they don't bundle policies.

  • BAn initiative definition that contains the eight policies

    Correct

    An initiative groups policy definitions so they're assigned and reported together.

  • CA resource lock with the eight policies attached

    Incorrect

    Locks don't contain policies; they prevent deletion or changes.

  • DEight separate policy assignments per subscription

    Incorrect

    Separate assignments work but have to be managed and tracked one by one.

An initiative (policy set) groups several policy definitions toward one goal, with a single assignment and an aggregated compliance view.

Question 8 · choose 1

Project owners want an email when spending is projected to exceed the monthly budget, before it actually does. What should you add to the budget?

  1. AA cost anomaly alert on the subscription
  2. BAzure Advisor cost recommendations for the subscription
  3. CA forecasted cost alert at 100 percent
  4. DAn actual cost alert at 100 percent
Show the answer and why
  • AA cost anomaly alert on the subscription

    Incorrect

    Anomaly alerts flag unusual changes, not projected budget overruns.

  • BAzure Advisor cost recommendations for the subscription

    Incorrect

    Advisor suggests savings such as resizing; it doesn't compare spending with a budget.

  • CA forecasted cost alert at 100 percent

    Correct

    Forecasted alerts fire when the projected cost is expected to exceed the threshold, giving early warning.

  • DAn actual cost alert at 100 percent

    Incorrect

    An actual cost alert fires once the money is already spent.

Budgets support alerts on actual cost and on forecasted cost. Forecasted alerts use cost predictions to warn that the threshold is likely to be crossed.

Question 9 · choose 1

The finance team must add and correct cost tags on any resource in a subscription, but must not change the resources themselves. Which role should you assign?

  1. ATag Contributor
  2. BReader
  3. CContributor
  4. DResource Policy Contributor
Show the answer and why
  • ATag Contributor

    Correct

    Tag Contributor grants write access to tags without access to the resources themselves.

  • BReader

    Incorrect

    Reader can see tags but can't change them.

  • CContributor

    Incorrect

    Contributor can change and delete the resources, which isn't wanted.

  • DResource Policy Contributor

    Incorrect

    This role manages policy definitions and assignments, not tags on resources.

Writing to Microsoft.Resources/tags lets a user tag a resource without other access to it, and the Tag Contributor role grants exactly that. It can't tag resources through the portal, but it supports every tag operation through PowerShell and the REST API.

Question 10 · choose 1

Some resources are tagged env=Prod and others Env=prod. Which statement describes how Azure Resource Manager compares these tag names and values in tag operations?

  1. ABoth the names and the values are case-sensitive
  2. BBoth the names and the values are case-insensitive
  3. CThe names match regardless of case, but the values differ
  4. DThe names differ by case, but the values match
Show the answer and why
  • ABoth the names and the values are case-sensitive

    Incorrect

    Names aren't case-sensitive for operations, so env and Env are the same tag.

  • BBoth the names and the values are case-insensitive

    Incorrect

    Values are compared with case, so Prod and prod are different values.

  • CThe names match regardless of case, but the values differ

    Correct

    Tag names are case-insensitive for operations, while tag values are case-sensitive.

  • DThe names differ by case, but the values match

    Incorrect

    It's the other way round: names match and values differ.

Tag names are case-insensitive for operations, though the provider may keep the casing you typed, and tag values are case-sensitive.

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