You have been requested to use CloudFormation to maintain version control and achieve automation for the applications in your organization. The environment will consist of several networking components and application services. What is the best way to design the template?

Answer options:

A.Create separate templates based on functionality, create nested stacks with CloudFormation.
B.Use CloudFormation custom resources to handle dependencies between stacks
C.Create multiple templates in one CloudFormation stack.
D.Combine all resources into one template for version control and automation.

Answer – A
Create separate stacks templates. So create a separate one for networking so that can be managed separately.
Option B is incorrect because custom resources is not the right option for managing multiple components.
Option C is incorrect because You can’t have multiple templates in one CloudFormation stack
Option D is incorrect because maintaining one template can become an issue.
For more information on Cloudformation best practises please refer to the below link
http://docs.aws.amazon.com/AWSCloudFormation/latest/UserGuide/best-practices.html