Final answer:
Azure AD does not require the implementation of domain controllers on Azure virtual machines, as it is a cloud-based service.
Step-by-step explanation:
The statement that Azure Active Directory (Azure AD) requires the implementation of domain controllers on Azure virtual machines is false. Azure AD is a cloud-based identity and access management service, which does not require you to deploy domain controllers as you would in a traditional on-premises Active Directory environment. Instead, Azure AD allows for the management of user access to various cloud applications without the need for virtual machines acting as domain controllers.