- A
Individual private IP addresses assigned directly in the NSG rule
Why wrong: This works only while the IP addresses stay the same, which does not fit frequent VM rebuilds.
- B
An application security group referenced by the NSG rule
Application security groups let you group VMs logically and reference that group in NSG rules. When the backend VMs are rebuilt or their IPs change, the rule still applies as long as the NICs remain members of the ASG, which reduces manual maintenance.
- C
A service endpoint enabled on the subnet
Why wrong: Service endpoints are for secure access to supported Azure services, not for grouping VMs in NSG rules.
- D
A load balancer inbound NAT rule on port 1433
Why wrong: Inbound NAT rules publish access to individual VMs through a load balancer, but they do not simplify NSG targeting for a backend tier.
Quick Answer
The answer is an application security group (ASG) referenced by the NSG rule. This works because an ASG lets you logically group Azure VMs by function—such as a backend tier—and then use that group as the source or destination in a network security group rule. When backend VMs are rebuilt and receive dynamic IPs, their membership in the ASG is automatically updated, so the NSG rule continues to apply without any manual rewriting. On the AZ-104 exam, this scenario tests your understanding of how ASGs decouple network security from static IP addresses, a common trap being the temptation to use service tags or static IP ranges instead. Remember the memory tip: ASG stands for “Always Static Grouping” for dynamic IPs—think of it as a logical label that follows your VMs, not their addresses.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A backend tier runs on three Azure VMs. The VMs are rebuilt frequently and receive new private IP addresses during redeployment. The administrator must allow inbound TCP 1433 from the app tier without rewriting the NSG rule each time the backend VMs change. What should be used?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
An application security group referenced by the NSG rule
An application security group (ASG) allows you to group VMs logically (e.g., by tier) and reference that group in a network security group (NSG) rule. When backend VMs are rebuilt and receive new private IPs, the ASG membership is automatically updated, so the NSG rule continues to apply without manual changes. This makes ASG the correct choice for dynamic environments where IP addresses change frequently.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Individual private IP addresses assigned directly in the NSG rule
Why it's wrong here
This works only while the IP addresses stay the same, which does not fit frequent VM rebuilds.
- ✓
An application security group referenced by the NSG rule
Why this is correct
Application security groups let you group VMs logically and reference that group in NSG rules. When the backend VMs are rebuilt or their IPs change, the rule still applies as long as the NICs remain members of the ASG, which reduces manual maintenance.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A service endpoint enabled on the subnet
Why it's wrong here
Service endpoints are for secure access to supported Azure services, not for grouping VMs in NSG rules.
- ✗
A load balancer inbound NAT rule on port 1433
Why it's wrong here
Inbound NAT rules publish access to individual VMs through a load balancer, but they do not simplify NSG targeting for a backend tier.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse application security groups with network security groups or think that a load balancer or service endpoint can solve dynamic IP changes, but only ASGs provide a logical grouping that automatically follows VM IP changes without manual rule updates.
Detailed technical explanation
How to think about this question
An application security group is a logical container referenced by NSG rules; when a VM's NIC is associated with an ASG, the NSG rule automatically applies to all VMs in that ASG regardless of their current private IP addresses. Under the hood, Azure's software-defined networking (SDN) stack resolves the ASG to the set of NICs at runtime, enabling dynamic traffic filtering without IP-based rules. In a real-world scenario, this is critical for auto-scaling or CI/CD pipelines where VMs are frequently replaced, as it eliminates the operational overhead of updating NSG rules.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Implement and Manage Virtual Networking — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Implement and Manage Virtual Networking — This question tests Implement and Manage Virtual Networking — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: An application security group referenced by the NSG rule — An application security group (ASG) allows you to group VMs logically (e.g., by tier) and reference that group in a network security group (NSG) rule. When backend VMs are rebuilt and receive new private IPs, the ASG membership is automatically updated, so the NSG rule continues to apply without manual changes. This makes ASG the correct choice for dynamic environments where IP addresses change frequently.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
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