- A
Assign a user-assigned managed identity and attach it to each VM.
A user-assigned managed identity can be reused across multiple VMs and survives VM rebuilds because it is a separate Azure resource. That makes it ideal when the same identity must work for several machines over time.
- B
Store the storage account access key in a script variable.
Why wrong: Embedding an access key in a script variable still leaves a secret inside automation content. That violates the security requirement and creates a high-risk credential-management problem.
- C
Use a Custom Script Extension to run the bootstrap commands at provisioning.
A Custom Script Extension is an appropriate way to run first-boot installation steps without putting secrets directly in the image or template. It lets Azure execute the bootstrap logic on the VM during provisioning.
- D
Create a separate local administrator account for the script to use.
Why wrong: A local administrator account does not solve secret storage, and it does not provide a reusable Azure authentication mechanism for Blob Storage. It also increases operational overhead and credential exposure.
- E
Embed a SAS token directly in the Bicep parameters file.
Why wrong: A SAS token is still a secret, and placing it in a parameters file exposes it to anyone who can read the deployment artifact. That conflicts with the requirement to avoid secrets in templates and scripts.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 bootstrap script must install software on three VMs, then download configuration files from Blob Storage. Security forbids secrets in templates or scripts, and the same authentication method must work after the VMs are rebuilt. Which two choices should you make? Select two.
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
Assign a user-assigned managed identity and attach it to each VM.
Option A is correct because a user-assigned managed identity provides a secure, credential-free authentication method that persists across VM rebuilds. Unlike system-assigned managed identities, which are tied to a specific VM lifecycle and are lost when the VM is deleted, a user-assigned identity is a standalone Azure resource that can be reassigned to new VMs. This allows the bootstrap script to authenticate to Azure Blob Storage via Azure AD without storing any secrets, satisfying the security constraint.
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.
- ✓
Assign a user-assigned managed identity and attach it to each VM.
Why this is correct
A user-assigned managed identity can be reused across multiple VMs and survives VM rebuilds because it is a separate Azure resource. That makes it ideal when the same identity must work for several machines over time.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Store the storage account access key in a script variable.
Why it's wrong here
Embedding an access key in a script variable still leaves a secret inside automation content. That violates the security requirement and creates a high-risk credential-management problem.
- ✓
Use a Custom Script Extension to run the bootstrap commands at provisioning.
Why this is correct
A Custom Script Extension is an appropriate way to run first-boot installation steps without putting secrets directly in the image or template. It lets Azure execute the bootstrap logic on the VM during provisioning.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a separate local administrator account for the script to use.
Why it's wrong here
A local administrator account does not solve secret storage, and it does not provide a reusable Azure authentication mechanism for Blob Storage. It also increases operational overhead and credential exposure.
- ✗
Embed a SAS token directly in the Bicep parameters file.
Why it's wrong here
A SAS token is still a secret, and placing it in a parameters file exposes it to anyone who can read the deployment artifact. That conflicts with the requirement to avoid secrets in templates and scripts.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse system-assigned managed identities (which are tied to the VM lifecycle and lost on deletion) with user-assigned managed identities (which persist independently), leading them to incorrectly assume that managed identities cannot survive a VM rebuild.
Detailed technical explanation
How to think about this question
User-assigned managed identities use Azure AD tokens obtained via the Azure Instance Metadata Service (IMDS) endpoint at 169.254.169.254. The VM requests a token for the managed identity’s service principal, which is then used to authenticate to Azure Storage via OAuth 2.0. The storage account must be configured to allow Azure AD authentication (disable anonymous access and set the appropriate RBAC role, e.g., Storage Blob Data Reader). After a VM rebuild, the new VM is assigned the same user-assigned identity, and the bootstrap script can immediately request a new token without any credential management.
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.
- →
Manage Azure Identities and Governance — study guide chapter
Learn the concepts, then practise the questions
- →
Manage Azure Identities and Governance practice questions
Targeted practice on this topic area only
- →
All AZ-104 questions
1,170 questions across all exam domains
- →
AZ-104 study guide
Full concept coverage aligned to exam objectives
- →
AZ-104 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related AZ-104 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Manage Azure Identities and Governance practice questions
Practise AZ-104 questions linked to Manage Azure Identities and Governance.
Implement and Manage Storage practice questions
Practise AZ-104 questions linked to Implement and Manage Storage.
Deploy and Manage Azure Compute practice questions
Practise AZ-104 questions linked to Deploy and Manage Azure Compute.
Implement and Manage Virtual Networking practice questions
Practise AZ-104 questions linked to Implement and Manage Virtual Networking.
Monitor and Maintain Azure Resources practice questions
Practise AZ-104 questions linked to Monitor and Maintain Azure Resources.
AZ-104 Azure RBAC practice questions
Practise AZ-104 questions linked to AZ-104 Azure RBAC.
AZ-104 storage account practice questions
Practise AZ-104 questions linked to AZ-104 storage account.
AZ-104 virtual network practice questions
Practise AZ-104 questions linked to AZ-104 virtual network.
AZ-104 NSG practice questions
Practise AZ-104 questions linked to AZ-104 NSG.
AZ-104 Azure Monitor practice questions
Practise AZ-104 questions linked to AZ-104 Azure Monitor.
AZ-104 backup practice questions
Practise AZ-104 questions linked to AZ-104 backup.
AZ-104 managed identity practice questions
Practise AZ-104 questions linked to AZ-104 managed identity.
Practice this exam
Start a free AZ-104 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this AZ-104 question test?
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Assign a user-assigned managed identity and attach it to each VM. — Option A is correct because a user-assigned managed identity provides a secure, credential-free authentication method that persists across VM rebuilds. Unlike system-assigned managed identities, which are tied to a specific VM lifecycle and are lost when the VM is deleted, a user-assigned identity is a standalone Azure resource that can be reassigned to new VMs. This allows the bootstrap script to authenticate to Azure Blob Storage via Azure AD without storing any secrets, satisfying the security constraint.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Keep practising
More AZ-104 practice questions
- A storage automation service principal must upload, read, and delete blob data in one container by using Microsoft Entra…
- A subnet contains several application servers. You need to allow inbound TCP 3389 only from a management subnet named Su…
- A subscription admin wants to investigate who changed a resource and also review the platform-generated events for that…
- Based on the exhibit, which Azure feature should the administrator use to track this kind of platform-wide service issue…
- An administrator wants a script running on an Azure VM to create a resource in Azure without storing any passwords or cl…
- A PowerShell script runs on an Azure VM every night and uses Azure CLI commands to create tags and VM resources in anoth…
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.