Microsoft Certified: Azure Fundamentals (AZ-900) 2026 – 400 Free Practice Questions to Pass the Exam

Policy definitions in Azure provide a way to enforce specific rules and compliance for resources in your cloud environment. They play a crucial role in governance by allowing you to define what resource configurations are permissible.

The option that includes allowed Virtual Machine (VM) SKUs pertains to controlling the types of VMs that can be created within a subscription or a resource group. This is important for managing costs and ensuring that the most appropriate VM types are available based on organizational needs and compliance requirements.

The allowed resource type option is also integral to policy definitions as it specifies the types of resources that can be deployed. This helps ensure that only certain resource types that meet governance standards are provisioned, which can mitigate risks and maintain compliance with corporate policies.

Since both allowed VM SKUs and allowed resource types are valid aspects of policy definitions, selecting "All of the above" appropriately acknowledges that multiple options are indeed available for defining policies in Azure. This comprehensive approach allows organizations to maintain better control over their cloud resources, aligning usage with defined standards and practices.