Microsoft Azure Solutions Architect Expert AZ-305 Practice Question

Creating a root management group and then separate management groups for each geography, with division-level management groups under them, meets every requirement. Because all subscriptions remain in one Azure AD tenant and Enterprise Agreement, billing stays consolidated. Region-specific Azure Policy assignments made at the EMEA or Americas management-group scope automatically cascade to the underlying division management groups and their subscriptions. Placing a tag-enforcement policy at the tenant root management group guarantees that every resource in every child scope inherits the required tags. Each division's dedicated management group can contain its own subscriptions, so division administrators can manage them independently.

The single-management-group design forces policy assignments to be repeated on every subscription and complicates administration. Splitting into separate tenants breaks the consolidated billing requirement and adds identity complexity. Relying on resource-group-level organization places all workloads in one subscription, preventing autonomous subscription management and limiting policy inheritance. Therefore, the hierarchical management-group structure with inherited policy assignments and tagging at the root is the most efficient and compliant choice.