Question 264 of 1,170

Deploy and Manage Azure Compute →hardMultiple ChoiceObjective-mapped

Quick Answer

The answer is a user-assigned managed identity assigned to the container group. This approach is correct because a user-assigned managed identity is a standalone Azure AD identity that exists independently of any resource’s lifecycle, meaning it can be pre-created and then assigned to any number of container groups. When the container group needs to pull an image from a private Azure Container Registry, it uses this identity to obtain an Azure AD token, eliminating the need to embed or store registry credentials in the deployment. On the AZ-104 exam, this scenario tests your understanding of identity management for container workloads, often appearing as a trap where candidates mistakenly choose a system-assigned managed identity—which is tied to the container group’s lifecycle and would be lost if the group is recreated. The key memory tip is “user-assigned = reusable and decoupled,” while system-assigned is “born with the resource, dies with the resource.”

AZ-104 Deploy and Manage Azure Compute Practice Question

This AZ-104 practice question tests your understanding of deploy and manage azure compute. 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 container group must run an image from a private Azure Container Registry without embedding registry credentials in the deployment. The same authentication method should be reusable by future container groups, and the application must continue to work if the container group is recreated. Which identity approach should the administrator use?

Question 1hardmultiple choice

Full question →

A
A system-assigned managed identity for the container group.
Why wrong: A system-assigned identity works for one container group, but it is bound to that specific resource lifecycle. It is not the best choice when the same identity must be reused by future deployments.
B
A user-assigned managed identity assigned to the container group.
A user-assigned managed identity can be reused across container groups and survives recreation of the workload resource. After granting the identity AcrPull on the registry, the container group can authenticate without stored usernames, passwords, or registry secrets.
C
An ACR admin username and password stored in the container image.
Why wrong: Embedding registry credentials in the image is insecure and difficult to rotate. It also violates the requirement to avoid credentials and does not provide reusable Azure identity-based access.
D
A shared access signature token passed as an environment variable.
Why wrong: A SAS token is still a secret and is time-bound, which creates management overhead. It is not the preferred identity-based pattern for pulling images from ACR.

Full breakdown with real-world context →

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

✓

A user-assigned managed identity assigned to the container group.

A user-assigned managed identity (B) is the correct approach because it is a persistent Azure AD identity that can be pre-created and assigned to any number of container groups. It decouples the identity from the container group's lifecycle, so if the container group is recreated, the same identity can be reassigned without reconfiguration. The container group uses this identity to authenticate to ACR via Azure AD token-based authentication, eliminating the need to embed registry credentials.

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.

✗
A system-assigned managed identity for the container group.
Why it's wrong here
A system-assigned identity works for one container group, but it is bound to that specific resource lifecycle. It is not the best choice when the same identity must be reused by future deployments.
✓
A user-assigned managed identity assigned to the container group.
Why this is correct
A user-assigned managed identity can be reused across container groups and survives recreation of the workload resource. After granting the identity AcrPull on the registry, the container group can authenticate without stored usernames, passwords, or registry secrets.
Related concept
Read the scenario before looking for a memorised answer.
✗
An ACR admin username and password stored in the container image.
Why it's wrong here
Embedding registry credentials in the image is insecure and difficult to rotate. It also violates the requirement to avoid credentials and does not provide reusable Azure identity-based access.
✗
A shared access signature token passed as an environment variable.
Why it's wrong here
A SAS token is still a secret and is time-bound, which creates management overhead. It is not the preferred identity-based pattern for pulling images from ACR.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often choose system-assigned managed identity (A) because it is simpler to configure, but they overlook the requirement for reusability across container group recreations, which only a user-assigned managed identity can satisfy due to its independent lifecycle.

Detailed technical explanation

How to think about this question

Under the hood, a user-assigned managed identity is registered as a resource in Azure AD and can be assigned to multiple Azure resources, including container groups. The container group's identity endpoint (via the Azure Instance Metadata Service) provides an OAuth 2.0 token that ACR accepts for `docker pull` operations when the ACR has a role assignment (e.g., AcrPull) for that identity. This approach ensures that even if the container group is recreated, the same identity is reassigned, and the application continues to authenticate seamlessly without 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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.

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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FAQ

Questions learners often ask

What does this AZ-104 question test?

Deploy and Manage Azure Compute — This question tests Deploy and Manage Azure Compute — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: A user-assigned managed identity assigned to the container group. — A user-assigned managed identity (B) is the correct approach because it is a persistent Azure AD identity that can be pre-created and assigned to any number of container groups. It decouples the identity from the container group's lifecycle, so if the container group is recreated, the same identity can be reassigned without reconfiguration. The container group uses this identity to authenticate to ACR via Azure AD token-based authentication, eliminating the need to embed registry credentials.

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 →

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Same concept, more angles

1 more ways this is tested on AZ-104

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. A container group in Azure Container Instances must pull a private image from Azure Container Registry without embedding registry credentials in the template. What should you configure?

medium

✓ A.A managed identity for the container group and the AcrPull role on the registry
B.An admin user account on the Azure Container Registry
C.A shared access signature in a container environment variable
D.A public network access rule that allows all Azure services

Why A: Option A is correct because Azure Container Instances (ACI) can authenticate to Azure Container Registry (ACR) using a managed identity assigned to the container group. By granting the managed identity the AcrPull role on the registry, ACI can pull private images without embedding any credentials in the deployment template, leveraging Azure AD authentication and RBAC for secure access.

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