A DevOps engineer must run an Azure CLI script from a Windows VM to create resources in a specific resource group in another subscription. The script must not use a client secret or password, and access should be limited to only that resource group. Which three actions should the administrator take? Select three.
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Best answer
Enable a system-assigned managed identity on the source VM so the script can authenticate without stored credentials.
A system-assigned managed identity is tied directly to the VM and removes the need to store secrets on disk. It is the simplest credential-free option when a script runs inside a single virtual machine and must access Azure resources programmatically.
Best answer
Assign Contributor on the target resource group to the VM identity so the script can create the required resources.
Contributor at the resource-group scope allows resource creation and management within that group without granting broader subscription access. This matches the least-privilege requirement and keeps the permissions scoped to only the target area.
Best answer
Use az login --identity in the script before running the Azure CLI deployment commands.
az login --identity tells Azure CLI to use the VM's managed identity instead of an interactive account or saved secret. This is the expected authentication flow for running Azure CLI commands from within an Azure VM with managed identity enabled.
Distractor review
Create a service principal and store its client secret in a file on the VM for the script to read.
This works technically, but it violates the requirement to avoid passwords or long-lived secrets on the VM. It also creates secret-rotation and protection overhead that managed identities are designed to remove.
Distractor review
Grant Reader on the resource group because Reader permissions are sufficient for Azure CLI resource creation.
Reader is a read-only role and cannot create or modify Azure resources. It would allow inspection, but it would fail when the script tries to deploy or change anything in the resource group.
Common exam trap
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Technical deep dive
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
- Authentication checks who the user is.
- Authorization controls what the user is allowed to do after login.
- Privilege levels affect access to EXEC and configuration commands.
- AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
- Do not assume successful login means full administrative access.
- Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
- Separate login problems from permission problems before choosing the answer.
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A route table contains these entries: 10.0.0.0/8 with next hop Virtual appliance, and 10.1.1.0/24 with next hop Virtual network gateway. Which next hop will Azure use for traffic to 10.1.1.5?
Question 2
You are deploying a stateless web application on Azure virtual machines. The solution must automatically add and remove instances based on CPU demand and allow all instances to be managed as one logical group. Which Azure compute feature should you deploy?
Question 3
You are deploying a Windows Server VM for an internal app. The VM must support Secure Boot and vTPM later, its OS disk must survive host moves, and the team wants the lowest-cost managed disk tier that still behaves like a normal writable OS disk. Which two choices should you make? Select two.
Question 4
You need to deploy several identical virtual machines and ensure that the failure of a single Azure host does not affect all of them. Which feature should you use?
Question 5
You need to connect VNet-Hub and VNet-Spoke so that resources in both virtual networks can communicate privately over the Microsoft backbone. Both virtual networks are in the same region. What should you configure?
Question 6
You need to create a storage account that provides the lowest-cost redundant storage for non-critical data and only needs protection against local disk or server failure within a single datacenter. Which redundancy option should you choose?
FAQ
Questions learners often ask
What does this AZ-104 question test?
Authentication checks who the user is.
What is the correct answer to this question?
The correct answer is: Enable a system-assigned managed identity on the source VM so the script can authenticate without stored credentials. — The best solution is to use the VM's managed identity for authentication and scope permissions only to the target resource group. A system-assigned identity avoids storing secrets, `az login --identity` lets the script use that identity, and Contributor on the target group grants just enough access to create the required resources. Together, these steps satisfy both the security constraint and the operational requirement. Why others are wrong: A service principal secret breaks the no-secrets requirement and increases operational risk. Reader is read-only and cannot deploy anything. The question asks for a secure, least-privilege automation approach from inside the VM, so managed identity plus scoped RBAC is the correct pattern.
What should I do if I get this AZ-104 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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