Developing Solutions for Microsoft Azure (AZ-204) Practice Exam

What is the function of an Azure management group?

1. To manage billing for multiple subscriptions.

2. To apply governance policies to collections of subscriptions.

3. To provide a virtual private network across subscriptions.

4. To facilitate collaboration among resource groups.

The correct answer is: To apply governance policies to collections of subscriptions.

An Azure management group serves as a way to manage and oversee multiple Azure subscriptions, allowing organizations to apply governance policies at a higher level than individual subscriptions. This hierarchical structure allows management groups to contain multiple subscriptions, enabling the organization to enforce compliance and policy settings consistently across all contained subscriptions. Using management groups, administrators can implement and enforce policies such as security rules, access controls, and regulatory compliance, ensuring that all subscriptions adhere to organizational standards. This functionality is crucial for larger organizations that manage multiple subscriptions, allowing for efficient governance and streamlined management of resources. The other options do not align with the primary purpose of Azure management groups. While managing billing for multiple subscriptions is important, that function is typically handled at the subscription or billing level instead. A virtual private network across subscriptions is related to network architecture rather than governance. Facilitating collaboration among resource groups, while relevant to resource management, does not directly pertain to the governance capabilities that management groups provide. Therefore, the ability to apply governance policies to collections of subscriptions defines the key role of Azure management groups.