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.
Exhibit
Application requirement:
- A web API runs on a single Azure VM
- The API must read blobs from Azure Storage without any stored password, key, or connection string
- The identity must be tied to the VM and removed automatically when the VM is deleted
Based on the exhibit, which identity should be enabled on the VM so the application can access Azure Blob Storage and the identity disappears when the VM is deleted?
Application requirement:
- A web API runs on a single Azure VM
- The API must read blobs from Azure Storage without any stored password, key, or connection string
- The identity must be tied to the VM and removed automatically when the VM is deleted
A
System-assigned managed identity
A system-assigned managed identity is tied directly to one Azure resource, such as a VM. It is created and removed with the VM, which matches the requirement that the identity disappear automatically when the VM is deleted. The application can use the identity to request tokens for Blob Storage without storing secrets in code or configuration.
B
User-assigned managed identity
Why wrong: A user-assigned identity is reusable and persists independently of the VM, so it does not disappear when the VM is deleted.
C
Storage account shared key
Why wrong: A shared key is a long-lived secret and directly contradicts the no-secret requirement.
D
SAS token stored in a startup script
Why wrong: A SAS token is still a secret and must be stored or rotated, which is not the requested model.
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
A 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 can be granted access to Azure Blob Storage via Azure RBAC, allowing the application to authenticate without storing credentials. This matches the requirement for an identity that disappears with the VM.
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
Why this is correct
A system-assigned managed identity is tied directly to one Azure resource, such as a VM. It is created and removed with the VM, which matches the requirement that the identity disappear automatically when the VM is deleted. The application can use the identity to request tokens for Blob Storage without storing secrets in code or configuration.
Related concept
Read the scenario before looking for a memorised answer.
✗
User-assigned managed identity
Why it's wrong here
A user-assigned identity is reusable and persists independently of the VM, so it does not disappear when the VM is deleted.
✗
Storage account shared key
Why it's wrong here
A shared key is a long-lived secret and directly contradicts the no-secret requirement.
✗
SAS token stored in a startup script
Why it's wrong here
A SAS token is still a secret and must be stored or rotated, which is not the requested model.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse user-assigned managed identities (which persist independently) with system-assigned managed identities (which are tied to the VM lifecycle), leading them to select the wrong option when the question explicitly requires the identity to disappear with the VM.
Detailed technical explanation
How to think about this question
System-assigned managed identities use Azure Instance Metadata Service (IMDS) at 169.254.169.254 to obtain an access token for Azure AD, which is then used to authenticate to Azure Blob Storage via OAuth 2.0. The identity is automatically created and deleted with the VM resource, and its service principal is registered in Azure AD under the same tenant. In a real-world scenario, this is ideal for temporary VMs used in batch processing or auto-scaling environments where you want to avoid orphaned identities.
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: System-assigned managed identity — A 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 can be granted access to Azure Blob Storage via Azure RBAC, allowing the application to authenticate without storing credentials. This matches the requirement for an identity that disappears with the VM.
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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