The answer is that a user-assigned managed identity can be assigned to more than one VM. This is correct because a user-assigned managed identity is created as a standalone Azure resource with its own independent lifecycle, separate from any virtual machine. Unlike a system-assigned identity, which is tied directly to a single VM and deleted when that VM is removed, a user-assigned identity persists as a distinct object in Azure, allowing it to be created, deleted, and reassigned across multiple resources without being affected by the deletion of any one VM. On the AZ-104 exam, this concept tests your understanding of managed identity types and their resource dependencies—a common trap is confusing the lifecycle of user-assigned versus system-assigned identities, where the latter is automatically destroyed with its parent resource. Remember the key distinction: user-assigned is a reusable, independent resource; system-assigned is a tied, ephemeral one. A helpful mnemonic is "User = Unbound, System = Synced to the source."
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.
An operations team needs one Azure identity that can be attached to several VMs and kept even if a VM is deleted. Which two statements about a user-assigned managed identity are correct? Select two.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
It is created as a separate Azure resource.
Option A is correct because a user-assigned managed identity is created as a separate Azure resource in its own right, independent of any VM. This means it has its own lifecycle and can be managed (created, deleted, assigned) independently from the VMs it is associated with.
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.
✓
It is created as a separate Azure resource.
Why this is correct
A user-assigned managed identity exists independently of any VM and is managed like its own Azure resource.
Related concept
Read the scenario before looking for a memorised answer.
✓
It can be assigned to more than one VM.
Why this is correct
The same user-assigned identity can be attached to multiple resources, which makes it reusable across VMs.
Related concept
Read the scenario before looking for a memorised answer.
✗
It is automatically deleted when the first VM is deleted.
Why it's wrong here
That behavior describes a system-assigned identity, not a user-assigned one.
✗
It requires a storage account access key to work.
Why it's wrong here
Managed identities are designed to avoid secret-based credentials such as account keys.
✗
It can only be attached to one VM at a time.
Why it's wrong here
A user-assigned identity is specifically designed for reuse across multiple resources.
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 managed identities, which are tied to the VM lifecycle and are automatically deleted when the VM is deleted, leading them to incorrectly select option C.
Detailed technical explanation
How to think about this question
Under the hood, a user-assigned managed identity creates a service principal in Azure AD and a corresponding Azure resource of type 'Microsoft.ManagedIdentity/userAssignedIdentities'. When assigned to a VM, the Azure Instance Metadata Service (IMDS) endpoint provides the identity's client ID and tenant ID, allowing the VM to obtain tokens from Azure AD without any credential management. This design enables the identity to be reused across multiple VMs and survive VM deletions, which is critical for scenarios like shared application access across a fleet of VMs.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
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: It is created as a separate Azure resource. — Option A is correct because a user-assigned managed identity is created as a separate Azure resource in its own right, independent of any VM. This means it has its own lifecycle and can be managed (created, deleted, assigned) independently from the VMs it is associated with.
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 →
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. Based on the exhibit, three Azure virtual machines run the same automation script. The VMs are rebuilt often, and the team wants one identity that can be reused across all three VMs and retained even if a VM is replaced. Which identity type should the administrator use?
easy
A.System-assigned managed identity on each VM, because each VM gets the same identity automatically.
✓ B.A user-assigned managed identity attached to all three VMs.
C.An Azure AD guest user account, because the same account can sign in from every VM.
D.A shared storage account key, because it can be used by multiple VMs without extra configuration.
Why B: A user-assigned managed identity is the correct choice because it is created as a standalone Azure resource and can be assigned to multiple VMs. Unlike system-assigned identities, which are tied to the lifecycle of a single VM, a user-assigned identity persists independently and remains available even when VMs are rebuilt or replaced. This allows the automation script to use the same identity across all three VMs without needing to reconfigure permissions after each rebuild.
Variation 2. Two Azure virtual machines run the same automation script and both need access to Key Vault and Storage. The script must keep working if one VM is redeployed, and the team wants the same identity to be usable by both VMs. What should the administrator use?
medium
A.A system-assigned managed identity on each VM
✓ B.A user-assigned managed identity attached to both VMs
C.A service principal stored in a configuration file on the VMs
D.A storage account access key stored in the script
Why B: A user-assigned managed identity is the correct choice because it is created as a standalone Azure resource and can be assigned to multiple VMs. This ensures both VMs share the same identity for accessing Key Vault and Storage, and the identity persists independently of any single VM's lifecycle, so redeploying one VM does not break access for the other.
Last reviewed: Jun 11, 2026
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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.
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