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AZ-104 · Domain 4

Implement and manage virtual networking practice questions

Implement and manage virtual networking is worth 19% of the AZ-104 exam — the 3rd-heaviest of the 5 domains. Virtual networks and subnets, secure network access, name resolution, and load balancing. Official weighting 15–20%. 6 fully worked examples are further down this page, answers included.

Exam weight
19%
the 3rd-heaviest of the 5 domains
Questions
60
across 3 topics
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6 sample Implement and manage virtual networking questions, fully explained

Questions from the AZ-104 bank mapped to domain 4, with the answer key and the reasoning behind every option. None of them repeat the examples on the main AZ-104 practice page.

Question 1Implement and manage virtual networking

You create a subnet with the address range 10.1.1.0/24 in an Azure virtual network. How many IP addresses in that subnet are available for you to assign to resources?

Choose one.

  • a
    254

    254 is the classic on-premises answer (256 minus network and broadcast), but Azure reserves 5 addresses per subnet, not 2.

  • b
    256

    256 is the raw size of a /24 with nothing reserved; no network — Azure included — hands you every address in the block.

  • c
    251 Correct

    A /24 has 256 addresses, and Azure reserves 5 in every subnet (network address, default gateway, two for Azure DNS, and broadcast), leaving 251 usable.

  • d
    250

    250 would imply Azure reserves 6 addresses; the actual number reserved in every Azure subnet is 5.

The concept

Azure reserves 5 IP addresses in every subnet: x.x.x.0 (network), x.x.x.1 (default gateway), x.x.x.2 and x.x.x.3 (mapped for Azure DNS), and the last address (broadcast).

Why that’s the answer

A /24 contains 256 addresses. Subtracting Azure's 5 reserved addresses leaves 251 assignable. The 254 distractor is the traditional networking answer that only subtracts network and broadcast — the most common wrong answer on this question. 256 ignores reservations entirely, and 250 over-counts the reservation.

How to reason it out
  1. Compute the raw subnet size: 2^(32 - prefix length); for /24 that is 256.
  2. Subtract Azure's 5 reserved addresses (first four addresses plus the last one).
  3. Size subnets with this overhead in mind — this is also why Azure's smallest supported subnet is a /29, which yields only 3 usable addresses.

Exam tip: Azure reserves 5 IPs in every subnet, so a /24 gives you 251 usable addresses, not 254.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

Question 2Implement and manage virtual networking

You need to create a small subnet for exactly three network interfaces used by a management appliance. To conserve address space, you want the smallest subnet size Azure supports. Which prefix should you use?

Choose one.

  • a
    /30

    A /30 has only 4 addresses; after Azure's 5 reserved addresses nothing would remain, so Azure does not permit subnets smaller than /29.

  • b
    /28

    A /28 works (11 usable addresses) but it is not the smallest supported size, so it wastes address space against the stated requirement.

  • c
    /32

    A /32 is a single host address; it cannot be a subnet at all in Azure since there would be no room for the 5 reserved addresses.

  • d
    /29 Correct

    /29 is the smallest subnet Azure allows; it has 8 addresses, and after Azure's 5 reservations exactly 3 remain assignable — a perfect fit here.

The concept

Because Azure reserves 5 addresses in every subnet, the smallest subnet prefix Azure supports is /29, which leaves 3 usable addresses out of 8.

Why that’s the answer

/29 is both the minimum Azure allows and exactly sufficient for three NICs (8 total minus 5 reserved = 3 usable). /30 and /32 fail because their raw size cannot even cover Azure's 5 reservations, so Azure rejects them. /28 is valid but larger than necessary, so it does not satisfy the smallest-size constraint in the question.

How to reason it out
  1. Recall the Azure subnet limits: smallest is /29, largest is /2.
  2. Work out usable addresses as (2^(32 - prefix)) minus 5 reserved.
  3. Match the usable count to the number of NICs you must place, and leave growth headroom when the workload might scale.

Exam tip: The smallest Azure subnet is /29 — 8 addresses minus 5 reserved leaves 3 usable.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

Question 3Implement and manage virtual networking

You have a hub-spoke topology: VNet-Hub is peered with VNet-Spoke1, and VNet-Hub is peered with VNet-Spoke2. There is no network virtual appliance and no gateway. A VM in VNet-Spoke1 tries to connect to a VM's private IP in VNet-Spoke2 and fails. What is the cause?

Choose one.

  • a
    The default NSG rules block all traffic between peered virtual networks

    The default AllowVnetInBound rule actually permits traffic from peered VNets, because the VirtualNetwork service tag includes peered network address space.

  • b
    Global VNet peering does not support traffic between virtual machines

    Global peering fully supports VM-to-VM traffic (its main limitation involves reaching the frontend IP of a Basic load balancer); it is also irrelevant to why traffic will not transit the hub.

  • c
    VNet peering is non-transitive, so Spoke1 cannot reach Spoke2 through the hub without additional configuration Correct

    Peering relationships do not chain: Spoke1-to-Hub and Hub-to-Spoke2 peerings do not give Spoke1 a route to Spoke2. You need direct spoke-to-spoke peering or routing through an NVA in the hub.

  • d
    The two spokes must be in the same subscription for connectivity to work

    VNet peering works across subscriptions and even across Microsoft Entra tenants; subscription boundaries are not what blocks spoke-to-spoke traffic.

The concept

VNet peering is non-transitive: if A is peered with B and B is peered with C, A cannot communicate with C through B. In hub-spoke designs, spoke-to-spoke traffic requires either direct peering between spokes or user-defined routes that send traffic through a network virtual appliance or Azure Firewall in the hub.

Why that’s the answer

The only thing missing in this scenario is a path between the spokes — the two existing peerings do not compose into one. The NSG distractor fails because default rules allow VNet (including peered) traffic. The global peering distractor describes an unrelated limitation. The subscription distractor is false because peering spans subscriptions and tenants.

How to reason it out
  1. Map the peerings: Spoke1↔Hub and Hub↔Spoke2 exist, but no Spoke1↔Spoke2 relationship or route does.
  2. Remember the rule: peering never forwards traffic onward to a third VNet on its own.
  3. Fix it by peering the spokes directly, or by deploying an NVA or Azure Firewall in the hub and adding UDRs in each spoke that point spoke-to-spoke traffic at it.

Exam tip: Peering is non-transitive — spokes peered to the same hub cannot talk to each other without direct peering or an NVA route.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

Question 4Implement and manage virtual networking

VNet-Hub contains a VPN gateway connected to your on-premises network. VNet-Spoke is peered with VNet-Hub, and you want VMs in VNet-Spoke to reach on-premises through the hub's gateway with the LEAST administrative effort. Which configuration do you apply on the peering from VNet-Spoke to VNet-Hub?

Choose one.

  • a
    Enable "Use remote gateways" on the spoke side of the peering Correct

    "Use remote gateways" tells the spoke to learn routes from the gateway in the peered hub VNet, which — paired with "Allow gateway transit" on the hub side — gives the spoke on-premises connectivity without its own gateway.

  • b
    Deploy a second VPN gateway inside VNet-Spoke

    A per-spoke gateway would work but adds significant cost and management overhead, defeating the least-administrative-effort constraint and the point of hub-spoke design.

  • c
    Enable "Allow gateway transit" on the spoke side of the peering

    "Allow gateway transit" is set on the VNet that OWNS the gateway (the hub) to share it; the spoke has no gateway to share, so this setting is meaningless there.

  • d
    Convert the regional peering to global VNet peering

    Regional versus global describes whether the peered VNets are in the same region; it has nothing to do with sharing a gateway, and gateway transit is actually unsupported over some global peering scenarios rather than enabled by them.

The concept

Gateway transit lets peered VNets share one VPN or ExpressRoute gateway: the gateway-owning VNet enables "Allow gateway transit" and the consuming VNet enables "Use remote gateways". This is the standard hub-spoke pattern for hybrid connectivity.

Why that’s the answer

From the spoke's perspective, the correct switch is "Use remote gateways" — it consumes the hub's gateway and receives its routes. Deploying a gateway per spoke contradicts the least-effort constraint. "Allow gateway transit" belongs on the hub side, not the spoke. Changing peering to global addresses region scope, not gateway sharing.

How to reason it out
  1. On the hub-to-spoke peering, enable "Allow gateway transit" so the hub offers its gateway.
  2. On the spoke-to-hub peering, enable "Use remote gateways" so the spoke consumes it.
  3. Verify the spoke VMs' effective routes now include the on-premises prefixes via the virtual network gateway next hop.
  4. Note the constraint: a VNet using remote gateways cannot also have its own gateway.

Exam tip: Hub sets "Allow gateway transit"; spoke sets "Use remote gateways" — that pairing shares one gateway across the topology.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

Question 5Implement and manage virtual networking

You attempt to create a peering between VNet-A (10.0.0.0/16) and VNet-B (10.0.0.0/16) and the operation fails. What must you do before the two VNets can be peered?

Choose one.

  • a
    Move both virtual networks into the same resource group

    Peering works across resource groups, subscriptions, and tenants; resource group placement is never a peering requirement.

  • b
    Change the address space of one VNet so the ranges no longer overlap Correct

    Peering requires non-overlapping address space — identical 10.0.0.0/16 ranges make routing between the VNets ambiguous, so one side must be re-addressed before peering can succeed.

  • c
    Deploy a VPN gateway in each VNet and enable BGP

    VNet-to-VNet VPN is an alternative connection method, but it also cannot resolve identical overlapping prefixes, and it does not fix the peering failure.

  • d
    Enable "Allow forwarded traffic" on both sides of the peering

    "Allow forwarded traffic" governs whether traffic forwarded by an NVA is accepted; it is a setting on an existing peering and has no bearing on overlapping address spaces blocking creation.

The concept

Azure VNet peering requires the address spaces of the two VNets to be completely non-overlapping. With identical or overlapping prefixes, Azure cannot build unambiguous routes, so the peering is rejected.

Why that’s the answer

Re-addressing one VNet (for example, moving VNet-B to 10.1.0.0/16) is the only fix — overlap is a hard blocker. Resource group location is irrelevant to peering. A VNet-to-VNet VPN suffers the same overlap problem and adds cost. "Allow forwarded traffic" is a post-creation peering option unrelated to address planning.

How to reason it out
  1. Identify the overlap by comparing both VNets' address spaces in the portal or with az network vnet show.
  2. Plan a new non-overlapping range for one VNet from your IPAM scheme.
  3. Update that VNet's address space (this may require removing or re-addressing subnets and attached resources in the conflicting range).
  4. Create the peering again once the ranges are disjoint.

Exam tip: Overlapping address space is a hard blocker for VNet peering — plan unique CIDR ranges across every VNet you may ever connect.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

Question 6Implement and manage virtual networking

You peer VNet-East (East US) with VNet-West (West Europe) using global VNet peering. Which statement about the traffic between VMs in these two VNets is accurate?

Choose one.

  • a
    Traffic stays on the Microsoft global backbone and is private; no gateway or public internet transit is involved Correct

    Global VNet peering carries traffic between regions entirely over Microsoft's private backbone network using private IPs — no VPN gateway, no encryption devices, and no internet hop are required.

  • b
    Traffic is routed over the public internet inside an automatically created IPsec tunnel

    That describes a VNet-to-VNet VPN gateway connection; peering never traverses the public internet and creates no tunnels.

  • c
    Each VNet must deploy a VPN gateway before cross-region private connectivity works

    Gateways are exactly what peering lets you avoid; peered VNets exchange traffic directly over the backbone without any gateway resource.

  • d
    Global peering is not possible; peered VNets must reside in the same Azure region

    Same-region is only a property of regional peering; global VNet peering exists specifically to connect VNets in different regions.

The concept

VNet peering comes in two flavors: regional (same region) and global (different regions). Both route traffic privately across Microsoft's backbone infrastructure between private IP addresses, with no gateways, no tunnels, and no public internet exposure.

Why that’s the answer

The defining benefit of global peering is private, backbone-only, low-latency connectivity between regions without gateways. The IPsec distractor confuses peering with VNet-to-VNet VPN connections. The gateway-requirement distractor inverts peering's value proposition. The same-region-only distractor denies that global peering exists.

How to reason it out
  1. Choose peering (regional or global) when you need private VM-to-VM connectivity and do not need encryption in transit by an IPsec device.
  2. Create the peering from both VNets (or one operation that configures both directions) — no gateway resources are needed.
  3. Remember the notable global-peering limitation: resources behind a Basic internal load balancer are not reachable across a global peering.

Exam tip: Global VNet peering privately connects VNets across regions over Microsoft's backbone — no gateways, no internet.

Azure Virtual Networks, Subnets, Peering & User-Defined Routes — the lesson that teaches this.

What AZ-104 domain 4 tests, topic by topic

The official exam guide breaks Implement and manage virtual networking into 3 topics. The question bank follows the same split, so a weak topic shows up as a cluster of misses you can go back and read.

Published AZ-104 practice questions per topic in Implement and manage virtual networking
TopicWhat it coversQuestions
Configure and manage virtual networks in AzureSkills outline section (AZ-104, as of April 17, 2026). Creating and configuring virtual networks and subnets; creating and configuring virtual network peering; configuring public IP addresses; configuring user-defined routes; troubleshooting network connectivity.20
Configure secure access to virtual networksSkills outline section (AZ-104, as of April 17, 2026). Creating and configuring network security groups (NSGs) and application security groups; evaluating effective security rules in NSGs; implementing Azure Bastion; configuring service endpoints and private endpoints for Azure platform as a service (PaaS).20
Configure name resolution and load balancingSkills outline section (AZ-104, as of April 17, 2026). Configuring Azure DNS; configuring an internal or public load balancer; troubleshooting load balancing.20
Total60

Revise Implement and manage virtual networking before you drill it

Other AZ-104 domains

Implement and manage virtual networking: your questions

Implement and manage virtual networking is domain 4 of the AZ-104 exam guide and carries 19% of the scored content — the 3rd-heaviest of the 5 domains. On a 50-question paper that works out to roughly 10 questions, though Microsoft Azure does not publish an exact per-domain count and individual exam forms vary.

Source

The domain weight and topic list on this page come from the official AZ-104 exam guide.