- 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.
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?
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.
When this WOULD be correct
A question that asks for the simplest way to authenticate to ACR for a single container group where credential rotation is not a concern and the deployment is temporary or non-production. For example: 'You need to quickly test a container image from a private ACR. Which authentication method requires minimal setup?'
- ✗
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.
When this WOULD be correct
A question where a container group needs temporary, scoped access to a specific Azure resource (e.g., a storage blob) and the credentials can be refreshed on each deployment, with no requirement for persistence across recreation.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓A user-assigned managed identity assigned to the container group.Correct answer▾
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.
✗An ACR admin username and password stored in the container image.Wrong answer — click to see why▾
Why this is wrong here
ACR admin credentials are shared secrets that must be embedded in deployment, violating the requirement to avoid embedding credentials. They are not reusable across container groups without re-exposing the secret, and recreating the container group would require re-supplying the credentials.
★ When this WOULD be the correct answer
A question that asks for the simplest way to authenticate to ACR for a single container group where credential rotation is not a concern and the deployment is temporary or non-production. For example: 'You need to quickly test a container image from a private ACR. Which authentication method requires minimal setup?'
Why candidates choose this
Candidates may be familiar with ACR admin accounts as a straightforward way to pull images, and they might overlook the security and reusability constraints specified in the question.
✗A shared access signature token passed as an environment variable.Wrong answer — click to see why▾
Why this is wrong here
A shared access signature (SAS) token provides time-limited access and must be regenerated if the container group is recreated, violating the requirement that the authentication method be reusable and persist across recreation.
★ When this WOULD be the correct answer
A question where a container group needs temporary, scoped access to a specific Azure resource (e.g., a storage blob) and the credentials can be refreshed on each deployment, with no requirement for persistence across recreation.
Why candidates choose this
Candidates may think SAS tokens are a secure way to avoid embedding credentials, but overlook the requirement for reusability and persistence when the container group is recreated.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
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.
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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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Last reviewed: Jun 11, 2026
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