- A
A system-assigned managed identity on each VM.
Why wrong: System-assigned identities are tied to a single VM and disappear when that VM is deleted.
- B
A user-assigned managed identity attached to the VMs.
A user-assigned managed identity is created as a separate Azure resource and can be attached to multiple VMs. Because it is not tied to the lifecycle of a single VM, the same identity remains available even if one VM is deleted and rebuilt, which fits the requirement for shared, durable authentication.
- C
A service principal with a client secret stored in each VM.
Why wrong: This works technically, but it introduces secret management overhead and does not meet the goal of using Azure-managed identity patterns.
- D
A shared access signature stored in the VM registry.
Why wrong: A SAS is for scoped storage access, not for general Azure resource authentication across multiple VMs.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. 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 scheduled script runs on several Azure virtual machines that are created and replaced over time. The script must use the same Azure identity on every VM, and the identity should continue to exist even if one VM is deleted and recreated. What should the administrator use?
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 attached to the VMs.
A user-assigned managed identity is the correct choice because it is an Azure resource that exists independently of any VM, and it can be attached to multiple VMs. When a VM is deleted and recreated, the same user-assigned managed identity can be reattached, ensuring the script uses the same identity consistently. This decouples the identity lifecycle from the VM lifecycle, meeting the requirement for persistence across VM replacements.
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 on each VM.
Why it's wrong here
System-assigned identities are tied to a single VM and disappear when that VM is deleted.
- ✓
A user-assigned managed identity attached to the VMs.
Why this is correct
A user-assigned managed identity is created as a separate Azure resource and can be attached to multiple VMs. Because it is not tied to the lifecycle of a single VM, the same identity remains available even if one VM is deleted and rebuilt, which fits the requirement for shared, durable authentication.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A service principal with a client secret stored in each VM.
Why it's wrong here
This works technically, but it introduces secret management overhead and does not meet the goal of using Azure-managed identity patterns.
- ✗
A shared access signature stored in the VM registry.
Why it's wrong here
A SAS is for scoped storage access, not for general Azure resource authentication across multiple VMs.
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 a single resource's lifecycle) with user-assigned managed identities (which are independent and reusable), leading them to incorrectly choose option A for persistence across VM deletions.
Detailed technical explanation
How to think about this question
Under the hood, a user-assigned managed identity is registered as a service principal in Azure AD and can be assigned to Azure resources via Azure Resource Manager. When attached to a VM, the Azure Instance Metadata Service (IMDS) endpoint at 169.254.169.254 provides an access token for this identity, which the script can retrieve without any stored credentials. A real-world scenario is a scheduled backup script that needs to access the same Key Vault across multiple VMs; using a user-assigned managed identity ensures the script always authenticates with the same principal, even after VM reimaging.
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.
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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: A user-assigned managed identity attached to the VMs. — A user-assigned managed identity is the correct choice because it is an Azure resource that exists independently of any VM, and it can be attached to multiple VMs. When a VM is deleted and recreated, the same user-assigned managed identity can be reattached, ensuring the script uses the same identity consistently. This decouples the identity lifecycle from the VM lifecycle, meeting the requirement for persistence across VM replacements.
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
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