GCP Associate Cloud Engineer Practice Question

Your company just got a Cloud Identity account and now has an Organization node. You must migrate 30 standalone projects owned by different teams. Each project belongs to either the Finance or Engineering department. Teams need autonomy to manage their projects, and org administrators must apply future policy constraints (e.g., disabling external VM IPs) to Engineering only without affecting Finance. Which resource-hierarchy design meets these requirements with the least effort?

Move all projects directly under the Organization and tag them with labels for Finance or Engineering; grant IAM roles individually on every project.
Create two top-level folders named Finance and Engineering under the Organization, move each project into its folder, and grant department leads IAM roles on their folder.
Set up a separate Organization for each department and transfer the projects to the corresponding Organization.
Leave the projects as standalone (not under any Organization) and use Shared VPC to centralize network administration instead of changing the hierarchy.

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Answer Description

Folders are the recommended way to group projects that share common administrators or policy requirements. By creating one folder for Finance and another for Engineering, you can:

Move each team's projects into the appropriate folder once, then rely on inheritance for both IAM and Organization Policy.
Grant department leads roles on their folder so they automatically manage all current and future projects inside it.
Let central administrators attach constraints (such as blocking external VM IPs) to just the Engineering folder without touching Finance. Labels do not influence IAM or Organization Policy inheritance, so using only labels would require per-project administration. Maintaining separate Organizations would add unnecessary complexity and prevent shared billing or networking. Keeping projects outside any Organization would remove the ability to apply Organization Policies entirely. Therefore, structuring the hierarchy with dedicated top-level folders is the most efficient and scalable solution.

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