Question 689 of 1,170

Deploy and Manage Azure Compute →easyMatchingObjective-mapped

AZ-104 Deploy and Manage Azure Compute Practice Question

This AZ-104 practice question tests your understanding of deploy and manage azure compute. 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.

Match each VM identity concept to its best use.

A
System-assigned managed identity: Tied to the VM lifecycle, automatically created and deleted with the VM, best for accessing Azure resources without managing credentials.
System-assigned managed identity is created and deleted with the VM, providing automatic credential management for Azure resource access.
B
System-assigned managed identity: Best when a pre-provisioned identity is needed before the VM is created, or the identity must be assigned to multiple resources.
Why wrong: Incorrect — this describes user-assigned managed identity, which is independent and can be pre-created and assigned to multiple VMs.
C
User-assigned managed identity: Standalone identity that can be assigned to multiple VMs or other Azure resources, best when the identity must exist before resources or be reused.
User-assigned managed identity is a separate resource that can be shared across multiple VMs and is not tied to the VM lifecycle.
D
User-assigned managed identity: Automatically created and deleted with the VM, best for a single VM requiring access to Azure resources.
Why wrong: Incorrect — this describes system-assigned managed identity, which is tied to the VM's lifecycle.
E
Azure AD application (service principal): Used by custom applications that need their own identity to authenticate to Azure services, not tied to VM lifecycle.
Azure AD app identities are suitable for custom applications that require their own service principal for authentication.

Full breakdown with real-world context →

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: Tied to the VM lifecycle, automatically created and deleted with the VM, best for accessing Azure resources without managing credentials.

Managed identities (system or user-assigned) eliminate credential management; Azure AD app identity is for custom apps; IMDS provides tokens; role assignments grant access to resources.

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.

✓
System-assigned managed identity: Tied to the VM lifecycle, automatically created and deleted with the VM, best for accessing Azure resources without managing credentials.
Why this is correct
System-assigned managed identity is created and deleted with the VM, providing automatic credential management for Azure resource access.
Related concept
Read the scenario before looking for a memorised answer.
✗
System-assigned managed identity: Best when a pre-provisioned identity is needed before the VM is created, or the identity must be assigned to multiple resources.
Why it's wrong here
Incorrect — this describes user-assigned managed identity, which is independent and can be pre-created and assigned to multiple VMs.
✓
User-assigned managed identity: Standalone identity that can be assigned to multiple VMs or other Azure resources, best when the identity must exist before resources or be reused.
Why this is correct
User-assigned managed identity is a separate resource that can be shared across multiple VMs and is not tied to the VM lifecycle.
Related concept
Read the scenario before looking for a memorised answer.
✗
User-assigned managed identity: Automatically created and deleted with the VM, best for a single VM requiring access to Azure resources.
Why it's wrong here
Incorrect — this describes system-assigned managed identity, which is tied to the VM's lifecycle.
✓
Azure AD application (service principal): Used by custom applications that need their own identity to authenticate to Azure services, not tied to VM lifecycle.
Why this is correct
Azure AD app identities are suitable for custom applications that require their own service principal for authentication.
Related concept
Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Detailed technical explanation

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
Use explanations to understand the rule behind the answer.

TExam Day Tips

Underline the problem statement mentally.
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.

Identify which AZ-104 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.

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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: System-assigned managed identity: Tied to the VM lifecycle, automatically created and deleted with the VM, best for accessing Azure resources without managing credentials. — Managed identities (system or user-assigned) eliminate credential management; Azure AD app identity is for custom apps; IMDS provides tokens; role assignments grant access to resources.

What should I do if I get this AZ-104 question wrong?

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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