Explanation: Azure virtual machines run on Hyper-V physical servers. The physical servers are owned and managed by Microsoft. As an Azure customer, you have no access to the physical servers. Microsoft manage the replacement of failed server hardware and the security of the physical servers so you don’t need to. Incorrect Answers: B: Microsoft have no control over the applications you run on the virtual machines. Therefore, it is your responsibility to ensure that application data is backed up. D: Microsoft do not manage the operating systems you run on the virtual machines. Therefore, it is your responsibility to ensure that the operating systems are updated. E: Microsoft have no control over the shared folders you host on the virtual machines. Therefore, it is your responsibility to ensure that folder permissions are configured appropriately.