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
Workload note:
- VM01 and VM02 both need to read the same Azure SQL connection metadata from an app registration-protected service.
- The identity must be reusable across multiple VMs.
- The team wants to avoid secrets in scripts and configuration.
Based on the exhibit, which identity approach should the administrator use so both VMs can share the same access without managing secrets or recreating role assignments when a VM is replaced?
Exhibit
Workload note:
- VM01 and VM02 both need to read the same Azure SQL connection metadata from an app registration-protected service.
- The identity must be reusable across multiple VMs.
- The team wants to avoid secrets in scripts and configuration.
A
A separate system-assigned managed identity on each VM.
Why wrong: A system-assigned identity is tied to one VM and does not provide a shared identity across both VMs.
B
A single user-assigned managed identity attached to both VMs.
A user-assigned managed identity is independent of any one VM and can be attached to multiple resources. That makes it ideal when several VMs need the same permissions and the access must continue even if one VM is deleted or rebuilt.
C
An administrator username and password stored in the script.
Why wrong: Storing credentials in a script is insecure and does not meet the requirement for secret-free access.
D
A shared access signature assigned to the virtual network.
Why wrong: A SAS token is not an identity for multiple VMs, and it cannot be attached to a network in this way.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A single user-assigned managed identity attached to both VMs.
A user-assigned managed identity is an independent Azure resource that can be attached to multiple VMs, allowing them to share the same identity for accessing Azure resources. This approach eliminates the need to manage secrets (like passwords or keys) and avoids recreating role assignments when a VM is replaced, because the identity persists independently of the VM lifecycle.
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 separate system-assigned managed identity on each VM.
Why it's wrong here
A system-assigned identity is tied to one VM and does not provide a shared identity across both VMs.
When this WOULD be correct
This option would be correct if the question required each VM to have its own unique identity for independent access control, such as when each VM needs distinct permissions to different resources and there is no need to share access or simplify replacement.
✓
A single user-assigned managed identity attached to both VMs.
Why this is correct
A user-assigned managed identity is independent of any one VM and can be attached to multiple resources. That makes it ideal when several VMs need the same permissions and the access must continue even if one VM is deleted or rebuilt.
Related concept
Read the scenario before looking for a memorised answer.
✗
An administrator username and password stored in the script.
Why it's wrong here
Storing credentials in a script is insecure and does not meet the requirement for secret-free access.
When this WOULD be correct
A question that asks for the simplest authentication method for a legacy application that does not support managed identities, where the application runs on a single VM and credentials are rotated manually via Azure Key Vault.
✗
A shared access signature assigned to the virtual network.
Why it's wrong here
A SAS token is not an identity for multiple VMs, and it cannot be attached to a network in this way.
When this WOULD be correct
This option would be correct in a scenario where the administrator needs to grant a specific set of users or applications time-limited access to a storage account (e.g., blob or file share) from a defined IP range or virtual network, without requiring full storage account keys. For example, allowing a reporting tool running on a VM to download data from a storage container for a limited period.
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 single user-assigned managed identity attached to both VMs.Correct answer▾
Why this is correct
A user-assigned managed identity is independent of any one VM and can be attached to multiple resources. That makes it ideal when several VMs need the same permissions and the access must continue even if one VM is deleted or rebuilt.
✗A separate system-assigned managed identity on each VM.Wrong answer — click to see why▾
Why this is wrong here
A separate system-assigned managed identity on each VM would require managing two identities and recreating role assignments for each new VM, failing to meet the requirement of sharing the same access without managing secrets or recreating role assignments when a VM is replaced.
★ When this WOULD be the correct answer
This option would be correct if the question required each VM to have its own unique identity for independent access control, such as when each VM needs distinct permissions to different resources and there is no need to share access or simplify replacement.
Why candidates choose this
Candidates may think system-assigned managed identities are simpler because they are automatically created with the VM, overlooking that they are tied to the VM lifecycle and require separate role assignments per VM.
✗An administrator username and password stored in the script.Wrong answer — click to see why▾
Why this is wrong here
Storing an administrator username and password in a script introduces secrets management overhead and security risks, and does not eliminate the need to update credentials or role assignments when a VM is replaced.
★ When this WOULD be the correct answer
A question that asks for the simplest authentication method for a legacy application that does not support managed identities, where the application runs on a single VM and credentials are rotated manually via Azure Key Vault.
Why candidates choose this
Candidates may think that using a stored admin credential is a straightforward way to share access between VMs, overlooking the security and maintenance drawbacks compared to managed identities.
✗A shared access signature assigned to the virtual network.Wrong answer — click to see why▾
Why this is wrong here
A shared access signature (SAS) assigned to the virtual network provides delegated access to storage resources, not identity-based access to VMs. It cannot be used to grant VMs access to Azure resources without managing secrets, and it does not persist across VM replacements without manual updates.
★ When this WOULD be the correct answer
This option would be correct in a scenario where the administrator needs to grant a specific set of users or applications time-limited access to a storage account (e.g., blob or file share) from a defined IP range or virtual network, without requiring full storage account keys. For example, allowing a reporting tool running on a VM to download data from a storage container for a limited period.
Why candidates choose this
Candidates may confuse SAS with managed identities because both can provide secure access without hardcoding credentials. They might think a SAS scoped to a virtual network can be used for VM identity, not realizing SAS is for storage access delegation, not VM authentication to Azure services.
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 confuse system-assigned and user-assigned managed identities, incorrectly assuming that a system-assigned identity can be shared across VMs or that it persists after VM deletion, when in fact it is deleted with the VM.
Detailed technical explanation
How to think about this question
User-assigned managed identities are created as standalone Azure resources in Azure AD, with a service principal that can be assigned RBAC roles. When attached to a VM, the Azure Instance Metadata Service (IMDS) endpoint provides tokens for the identity, which the VM can use to authenticate to Azure services like Key Vault or Storage. This decouples the identity from the VM's lifecycle, so replacing the VM simply requires attaching the same user-assigned identity to the new VM, preserving all role assignments.
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.
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: A single user-assigned managed identity attached to both VMs. — A user-assigned managed identity is an independent Azure resource that can be attached to multiple VMs, allowing them to share the same identity for accessing Azure resources. This approach eliminates the need to manage secrets (like passwords or keys) and avoids recreating role assignments when a VM is replaced, because the identity persists independently of the VM lifecycle.
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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