Key points

• Organize subscriptions beneath the tenant root group.
• Policy and role assignments at a management group can inherit to descendant subscriptions.
• A clear hierarchy lets governance follow organizational or environment boundaries.

Best-known use cases

• Apply a policy to several production subscriptions.
• Delegate access across a subscription portfolio.

What candidates often confuse it with

• Management group vs subscription: governance container above subscriptions vs billing and resource-management boundary.
• Management group vs resource group: subscription organization vs resource lifecycle organization.

Key takeaway

Use management groups when several subscriptions need the same inherited governance or access boundary.

Related services

• Azure subscriptions
• Azure resource groups
• Azure resource tags

Relevant exam tasks

• D1.3.S3 — Apply and manage tags on resources
• D1.3.S4 — Manage resource groups
• D1.3.S5 — Manage subscriptions
• D1.3.S7 — Configure management groups

Learn more

• Azure management groups documentation