AZ-900 Azure Subscriptions &
Management Groups Practice Test
2026–2027 | Azure Hierarchy,
Governance & Detailed Answers
1. An organization has several Azure subscriptions that need to be governed
under a common hierarchy. Which Azure resource provides the highest-
level governance scope for those subscriptions?
A. Resource group
B. Azure subscription
C. Management group
D. Azure resource
Answer: Management group
Rationale: Management groups provide a governance level above subscriptions
and allow Azure Policy and role-based access control to be applied across
multiple subscriptions.
2. A company has separate Azure subscriptions for development, testing, and
production. The administrator wants to apply a common Azure Policy to all
, three subscriptions without configuring the policy separately in each
subscription. What should the administrator use?
A. Resource locks
B. Management group
C. Availability zone
D. Resource group
Answer: Management group
Rationale: A policy assigned at the management-group scope can be inherited
by child subscriptions, reducing repetitive governance configuration.
3. Which Azure hierarchy correctly represents the relationship between
management groups, subscriptions, resource groups, and resources?
A. Management group → Resource group → Subscription → Resource
B. Subscription → Management group → Resource → Resource group
C. Management group → Subscription → Resource group → Resource
D. Resource group → Management group → Subscription → Resource
Answer: Management group → Subscription → Resource group → Resource
Rationale: Azure's management hierarchy places management groups above
subscriptions, subscriptions above resource groups, and resource groups above
individual resources.
4. A multinational organization wants to separate Azure governance policies
by business division while allowing each division to maintain multiple
subscriptions. Which design is most appropriate?
A. One resource group per division
B. One management group per division
C. One resource per division
D. One availability zone per division
Answer: One management group per division
,Rationale: Management groups are designed to organize subscriptions
according to organizational structures and apply governance consistently across
those subscriptions.
5. An Azure administrator creates a new subscription under a management
group. What happens to applicable policies assigned at the parent
management-group level?
A. They are automatically deleted
B. They must be manually copied
C. They can be inherited by the subscription
D. They apply only to resources outside the subscription
Answer: They can be inherited by the subscription
Rationale: Azure governance assignments at parent management-group scopes
can flow down through the hierarchy to subscriptions and their resources.
6. Which Azure scope is directly above a resource group?
A. Resource
B. Subscription
C. Management group
D. Availability zone
Answer: Subscription
Rationale: Resource groups exist within subscriptions, so the subscription is their
immediate parent scope in the Azure resource hierarchy.
7. An administrator needs to prevent users from deploying resources into an
unauthorized Azure region across multiple subscriptions. Which
combination is most appropriate?
A. Management group and Azure Policy
B. Resource group and availability set
C. Subscription and Azure DNS
D. Resource lock and VPN Gateway
, Answer: Management group and Azure Policy
Rationale: A policy restricting allowed locations can be assigned at a
management group so that it governs multiple subscriptions through
inheritance.
8. Which statement about Azure subscriptions is correct?
A. A subscription can belong to multiple management groups simultaneously
B. A subscription is always required to contain at least one resource
C. A subscription provides a boundary for Azure resource organization, billing, and
access management
D. A subscription can contain resources from multiple tenants without
configuration
Answer: A subscription provides a boundary for Azure resource organization,
billing, and access management
Rationale: Azure subscriptions serve as important management, billing, and
access-control boundaries for cloud resources.
9. A company acquires another company and wants to place the acquired
company's subscriptions under a separate governance branch while
retaining centralized oversight. What should be created?
A. Resource groups
B. Child management groups
C. Availability sets
D. Storage accounts
Answer: Child management groups
Rationale: Management groups can be nested to create organizational
branches, allowing different governance structures while retaining centralized
management.
10.What is the primary purpose of using management groups in Azure?
Management Groups Practice Test
2026–2027 | Azure Hierarchy,
Governance & Detailed Answers
1. An organization has several Azure subscriptions that need to be governed
under a common hierarchy. Which Azure resource provides the highest-
level governance scope for those subscriptions?
A. Resource group
B. Azure subscription
C. Management group
D. Azure resource
Answer: Management group
Rationale: Management groups provide a governance level above subscriptions
and allow Azure Policy and role-based access control to be applied across
multiple subscriptions.
2. A company has separate Azure subscriptions for development, testing, and
production. The administrator wants to apply a common Azure Policy to all
, three subscriptions without configuring the policy separately in each
subscription. What should the administrator use?
A. Resource locks
B. Management group
C. Availability zone
D. Resource group
Answer: Management group
Rationale: A policy assigned at the management-group scope can be inherited
by child subscriptions, reducing repetitive governance configuration.
3. Which Azure hierarchy correctly represents the relationship between
management groups, subscriptions, resource groups, and resources?
A. Management group → Resource group → Subscription → Resource
B. Subscription → Management group → Resource → Resource group
C. Management group → Subscription → Resource group → Resource
D. Resource group → Management group → Subscription → Resource
Answer: Management group → Subscription → Resource group → Resource
Rationale: Azure's management hierarchy places management groups above
subscriptions, subscriptions above resource groups, and resource groups above
individual resources.
4. A multinational organization wants to separate Azure governance policies
by business division while allowing each division to maintain multiple
subscriptions. Which design is most appropriate?
A. One resource group per division
B. One management group per division
C. One resource per division
D. One availability zone per division
Answer: One management group per division
,Rationale: Management groups are designed to organize subscriptions
according to organizational structures and apply governance consistently across
those subscriptions.
5. An Azure administrator creates a new subscription under a management
group. What happens to applicable policies assigned at the parent
management-group level?
A. They are automatically deleted
B. They must be manually copied
C. They can be inherited by the subscription
D. They apply only to resources outside the subscription
Answer: They can be inherited by the subscription
Rationale: Azure governance assignments at parent management-group scopes
can flow down through the hierarchy to subscriptions and their resources.
6. Which Azure scope is directly above a resource group?
A. Resource
B. Subscription
C. Management group
D. Availability zone
Answer: Subscription
Rationale: Resource groups exist within subscriptions, so the subscription is their
immediate parent scope in the Azure resource hierarchy.
7. An administrator needs to prevent users from deploying resources into an
unauthorized Azure region across multiple subscriptions. Which
combination is most appropriate?
A. Management group and Azure Policy
B. Resource group and availability set
C. Subscription and Azure DNS
D. Resource lock and VPN Gateway
, Answer: Management group and Azure Policy
Rationale: A policy restricting allowed locations can be assigned at a
management group so that it governs multiple subscriptions through
inheritance.
8. Which statement about Azure subscriptions is correct?
A. A subscription can belong to multiple management groups simultaneously
B. A subscription is always required to contain at least one resource
C. A subscription provides a boundary for Azure resource organization, billing, and
access management
D. A subscription can contain resources from multiple tenants without
configuration
Answer: A subscription provides a boundary for Azure resource organization,
billing, and access management
Rationale: Azure subscriptions serve as important management, billing, and
access-control boundaries for cloud resources.
9. A company acquires another company and wants to place the acquired
company's subscriptions under a separate governance branch while
retaining centralized oversight. What should be created?
A. Resource groups
B. Child management groups
C. Availability sets
D. Storage accounts
Answer: Child management groups
Rationale: Management groups can be nested to create organizational
branches, allowing different governance structures while retaining centralized
management.
10.What is the primary purpose of using management groups in Azure?
