Question 1,098 of 1,170
Manage Azure Identities and GovernancemediumMultiple SelectObjective-mapped

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 project team expects frequent joiners and leavers. The same Azure permissions are needed for all members of the team, and you want to avoid editing role assignments for each person. Which two actions best meet the requirement? Select two.

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

Create a security group for the project team.

Option A is correct because creating a security group allows you to manage permissions collectively rather than individually. By adding or removing users from the group as joiners and leavers occur, you avoid editing role assignments for each person. This aligns with Azure AD group-based licensing and RBAC best practices for dynamic teams.

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.

  • Create a security group for the project team.

    Why this is correct

    A security group gives you one identity container for the whole team, so membership changes do not require role assignment changes each time.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Assign the Azure roles to the group instead of individual users.

    Why this is correct

    Role assignment to the group centralizes authorization. When users join or leave, access changes automatically through membership updates.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Assign the same roles directly to every user account.

    Why it's wrong here

    Direct user assignments create ongoing administration overhead because every join or leave event requires a manual RBAC change.

    When this WOULD be correct

    In a scenario where a small, static team has unique permissions per user and no group-based assignment is possible, assigning roles directly to each user account is necessary.

  • Use guest accounts for all team members.

    Why it's wrong here

    Guest accounts are useful for external collaboration, but they do not by themselves reduce role assignment maintenance for an internal team.

    When this WOULD be correct

    A question requiring granting access to external partners or vendors who need temporary, limited access to Azure resources, and you want to manage their identities in your tenant without creating full user accounts.

  • Assign the roles to a service principal shared by the team.

    Why it's wrong here

    A service principal represents an application, not a changing group of users. It is the wrong identity type for team membership-based access.

    When this WOULD be correct

    If the requirement were to grant permissions to an automated script or application that runs on behalf of the team, and the team members do not need individual identities, then assigning roles to a service principal would be correct. For example, a deployment pipeline that needs access to Azure resources.

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.

Create a security group for the project team.Correct answer

Why this is correct

A security group gives you one identity container for the whole team, so membership changes do not require role assignment changes each time.

Assign the same roles directly to every user account.Wrong answer — click to see why

Why this is wrong here

Assigning roles directly to each user account requires editing role assignments for every joiner and leaver, which contradicts the requirement to avoid frequent edits.

★ When this WOULD be the correct answer

In a scenario where a small, static team has unique permissions per user and no group-based assignment is possible, assigning roles directly to each user account is necessary.

Why candidates choose this

Candidates may think direct assignment is simpler or more straightforward, not realizing the administrative overhead for frequent changes.

Use guest accounts for all team members.Wrong answer — click to see why

Why this is wrong here

Guest accounts are for external collaboration, not for managing internal team members. They do not simplify role assignment management for frequent joiners/leavers because each guest still needs individual role assignments or group membership.

★ When this WOULD be the correct answer

A question requiring granting access to external partners or vendors who need temporary, limited access to Azure resources, and you want to manage their identities in your tenant without creating full user accounts.

Why candidates choose this

Candidates may think guest accounts reduce administrative overhead for temporary members, but they overlook that guest accounts still require individual role assignments or group management, and are designed for external users, not internal team churn.

Assign the roles to a service principal shared by the team.Wrong answer — click to see why

Why this is wrong here

A service principal is an identity for applications or automated tools, not for human users. Assigning roles to a service principal shared by the team would not manage human joiners/leavers and could lead to security risks and lack of auditability.

★ When this WOULD be the correct answer

If the requirement were to grant permissions to an automated script or application that runs on behalf of the team, and the team members do not need individual identities, then assigning roles to a service principal would be correct. For example, a deployment pipeline that needs access to Azure resources.

Why candidates choose this

Candidates may confuse service principals with security groups, thinking both can be used to group permissions. They might also believe that a shared identity simplifies management, overlooking that service principals are not designed for human user management.

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 may think assigning roles directly to users (Option C) is simpler, but they overlook the administrative overhead of managing individual assignments for frequent joiners and leavers.

Detailed technical explanation

How to think about this question

Under the hood, Azure RBAC evaluates role assignments at the group level, meaning permissions propagate to all group members without additional overhead. When using Azure AD Premium P1 or P2, you can also leverage dynamic group membership rules to automatically add or remove users based on attributes like department or job title, further reducing manual effort. This approach scales efficiently for large teams with high turnover.

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.

Quick reference

Access Control Model Comparison

ModelAcronymWho Controls Access?Best For
Discretionary Access ControlDACResource ownerSmall teams, file shares
Mandatory Access ControlMACSystem / security labelsClassified govt / military
Role-Based Access ControlRBACAdministrator (via roles)Enterprise environments
Attribute-Based Access ControlABACPolicy engine (user + resource attributes)Fine-grained, dynamic policies
Rule-Based Access ControlRuBACSystem rules / ACLsFirewall rules, network ACLs

What to study next

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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: Create a security group for the project team. — Option A is correct because creating a security group allows you to manage permissions collectively rather than individually. By adding or removing users from the group as joiners and leavers occur, you avoid editing role assignments for each person. This aligns with Azure AD group-based licensing and RBAC best practices for dynamic teams.

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.

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Last reviewed: Jun 11, 2026

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