What does IAM Organizations allow you to manage within AWS?

IAM Organizations enables you to effectively manage a hierarchy of multiple AWS accounts, allowing for better organization, governance, and billing management within an enterprise. By using Organizations, you can create a structure of Organizational Units (OUs) that can represent business units or projects and apply policy-based management across those units and their associated accounts. This centralized management facilitates operations such as policy enforcement and consolidated billing, making it easier to maintain compliance and streamline operations across diverse teams.

The other choices do not accurately describe the core functionality of IAM Organizations. Service limits are managed through the AWS Account Management system rather than IAM Organizations. Backup policies for EC2 instances are handled through AWS Backup or AWS services individually, rather than through organizational structures. Access permissions for S3 buckets are managed with IAM roles and policies but are not directly tied to the management of multiple accounts in the same way that IAM Organizations operates.