- A
Storage account access key, because it is the simplest authentication method.
Why wrong: An access key is a secret and would have to be stored and managed on the VM or in configuration.
- B
System-assigned managed identity, because it is tied to that VM.
A system-assigned managed identity is attached directly to one Azure resource, such as a VM, and is automatically removed when that resource is deleted.
- C
Shared access signature, because it always removes the need for identity management.
Why wrong: A SAS can limit access, but it is still a token you must generate and manage, and it is not tied to the VM itself.
- D
User-assigned managed identity, because it is deleted automatically with the VM.
Why wrong: A user-assigned managed identity is reusable across resources and is not automatically deleted when one VM is removed.
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 single Azure virtual machine must read blobs from a storage account without storing any passwords, keys, or connection strings. The identity should be removed automatically if the VM is deleted. Which option should you 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
System-assigned managed identity, because it is tied to that VM.
System-assigned managed identity is tied directly to the lifecycle of the Azure VM. When the VM is deleted, the identity is automatically removed. It allows the VM to authenticate to Azure Storage without storing any credentials, using Azure AD tokens obtained via the Azure Instance Metadata Service (IMDS).
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.
- ✗
Storage account access key, because it is the simplest authentication method.
Why it's wrong here
An access key is a secret and would have to be stored and managed on the VM or in configuration.
- ✓
System-assigned managed identity, because it is tied to that VM.
Why this is correct
A system-assigned managed identity is attached directly to one Azure resource, such as a VM, and is automatically removed when that resource is deleted.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Shared access signature, because it always removes the need for identity management.
Why it's wrong here
A SAS can limit access, but it is still a token you must generate and manage, and it is not tied to the VM itself.
- ✗
User-assigned managed identity, because it is deleted automatically with the VM.
Why it's wrong here
A user-assigned managed identity is reusable across resources and is not automatically deleted when one VM is removed.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse user-assigned managed identities with system-assigned ones, assuming user-assigned identities are also automatically deleted with the VM, when in fact they are independent resources that must be manually cleaned up.
Detailed technical explanation
How to think about this question
Under the hood, a system-assigned managed identity creates a service principal in Azure AD automatically when the VM is provisioned. The VM obtains an access token by querying the IMDS endpoint (169.254.169.254) with a managed identity certificate, which is then used to authenticate to Azure Storage via OAuth 2.0. This eliminates the need for any secret rotation or storage, and the identity lifecycle is fully coupled with the VM's lifecycle.
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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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: System-assigned managed identity, because it is tied to that VM. — System-assigned managed identity is tied directly to the lifecycle of the Azure VM. When the VM is deleted, the identity is automatically removed. It allows the VM to authenticate to Azure Storage without storing any credentials, using Azure AD tokens obtained via the Azure Instance Metadata Service (IMDS).
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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