The company has common infrastructure components declared in several CloudFormation templates. The SysOps admin needs modular templates for these shared components with their own parameters and conditions. Which CloudFormation approach satisfies this requirement?

Building CloudFormation nested stacks allows you to create modular, reusable components. A nested stack is a stack created as a resource within another stack. This enables you to isolate common infrastructure elements (like networking or security groups) into their own templates, each with its own parameters and conditions, and then reference them from multiple parent stacks. This promotes reusability and simplifies template management. Creating a CloudFormation change set is used to preview proposed changes to your stack before implementing them, not for modularity. Implementing CloudFormation macros allows you to extend CloudFormation's capabilities by processing templates before stack creation, but it's not the primary mechanism for organizing reusable infrastructure components. Using CloudFormation stack sets is for deploying stacks to multiple accounts and regions simultaneously, not for breaking down a single stack into modular components.