AZ-104: Identity & Governance

Identity & Governance is one of the skill areas tested on the Azure Administrator (AZ-104) exam. Below are free AZ-104 practice questions with worked answers and a concept diagram — each with a plain-language explanation. Practice the first 10 questions of AZ-104 free, no signup.

The concept, in one picture

Concept flowAzure scope hierarchy (RBAC & Policy inheritance)
Azure scope hierarchy (RBAC & Policy inheritance)Management grouppolicy & access for many subscriptionsSubscriptionbilling & access boundaryResource grouplifecycle container for resourcesResourcethe VM, storage account, VNet, etc.

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Sample AZ-104 question

A subscription contains a single resource group, RG1, that holds virtual machines belonging to Finance, Sales, and Engineering. Without relocating any VM, you need to label each virtual machine so that reports can group and filter the VMs by the department that owns them. What should you do?

  • Assign a tag such as Department to each virtual machine
  • Create a separate resource group per department and move each VM into it
  • Create a management group for each department
  • Move each department's VMs into a dedicated subscription
Explanation

Tags are key/value metadata (for example, Department=Finance) that you attach directly to a resource such as a VM, letting you organize, filter, and report on resources that all share one resource group without moving anything. Creating a resource group or subscription per department would require relocating the VMs, which the scenario forbids. Management groups sit above subscriptions to organize governance across many subscriptions; they don't label individual VMs.

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