- A
Create a user-assigned managed identity that can exist independently of any single VM.
A user-assigned managed identity has its own lifecycle and is not deleted when a VM is removed. That makes it the correct choice when multiple VMs need the same identity and the identity must survive VM recreation.
- B
Attach the same user-assigned managed identity to each of the three VMs.
User-assigned identities are designed to be reused across multiple Azure resources. Assigning the same identity to each VM gives all three workloads a consistent identity without duplicating secrets or creating separate credentials.
- C
Grant the user-assigned identity the minimum required RBAC role on the target configuration endpoint.
The identity still needs authorization to read the endpoint, so RBAC must be assigned at the appropriate scope. Least privilege keeps the permission set narrow while allowing all VMs that use the shared identity to succeed.
- D
Use a system-assigned managed identity on only one VM and copy its access token to the other two VMs.
Why wrong: System-assigned identities are tied to a single resource and are not meant to be copied between machines. Access tokens are short-lived and cannot be reused safely or reliably as a shared identity mechanism.
- E
Store one application password locally on each VM and use it instead of Azure-managed identities.
Why wrong: Local passwords reintroduce secret management, rotation, and leakage risks. They also do not satisfy the requirement for an identity that continues to function cleanly when any VM is deleted or recreated.
Quick Answer
The correct answer is to create a user-assigned managed identity and grant it the minimum required RBAC role on the target configuration endpoint. A user-assigned managed identity is an independent Azure resource that exists separately from any VM, unlike a system-assigned identity which is permanently tied to a single VM’s lifecycle and is destroyed when the VM is deleted. This independence ensures the identity persists across VM deletion and recreation, allowing all three application VMs to share the same identity and maintain continuous access to the configuration endpoint. On the AZ-104 exam, this scenario tests your understanding of managed identity types and their lifecycle behaviors—a common trap is choosing system-assigned identity because it seems simpler, but it fails the persistence requirement. The key distinction is that user-assigned identities are reusable resources, while system-assigned identities are ephemeral per-VM. Memory tip: think of user-assigned as a “shared key” that stays in your pocket even after you throw away the lockers, while system-assigned is a key glued to each locker.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. 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.
Three application VMs in separate resource groups must use the same identity to read a configuration endpoint. The identity must keep working if any one VM is deleted and later recreated. Which three actions should the administrator take? Select three.
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 user-assigned managed identity that can exist independently of any single VM.
A user-assigned managed identity is an Azure resource that exists independently of any VM, unlike a system-assigned identity which is tied to the VM lifecycle. This independence ensures the identity persists even when a VM is deleted and recreated, maintaining continuous access to the configuration endpoint. By creating a user-assigned managed identity, the administrator decouples the identity from any single VM, satisfying the requirement that the identity must keep working after VM deletion and recreation.
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 user-assigned managed identity that can exist independently of any single VM.
Why this is correct
A user-assigned managed identity has its own lifecycle and is not deleted when a VM is removed. That makes it the correct choice when multiple VMs need the same identity and the identity must survive VM recreation.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Attach the same user-assigned managed identity to each of the three VMs.
Why this is correct
User-assigned identities are designed to be reused across multiple Azure resources. Assigning the same identity to each VM gives all three workloads a consistent identity without duplicating secrets or creating separate credentials.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Grant the user-assigned identity the minimum required RBAC role on the target configuration endpoint.
Why this is correct
The identity still needs authorization to read the endpoint, so RBAC must be assigned at the appropriate scope. Least privilege keeps the permission set narrow while allowing all VMs that use the shared identity to succeed.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use a system-assigned managed identity on only one VM and copy its access token to the other two VMs.
Why it's wrong here
System-assigned identities are tied to a single resource and are not meant to be copied between machines. Access tokens are short-lived and cannot be reused safely or reliably as a shared identity mechanism.
- ✗
Store one application password locally on each VM and use it instead of Azure-managed identities.
Why it's wrong here
Local passwords reintroduce secret management, rotation, and leakage risks. They also do not satisfy the requirement for an identity that continues to function cleanly when any VM is deleted or recreated.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse user-assigned and system-assigned managed identities, incorrectly assuming that a system-assigned identity can be shared across VMs or that its access token can be copied, when in fact system-assigned identities are per-resource and cannot survive resource deletion.
Detailed technical explanation
How to think about this question
User-assigned managed identities are backed by a service principal in Azure AD, and their lifecycle is independent of any Azure resource. When attached to a VM, the Azure Instance Metadata Service (IMDS) endpoint (169.254.169.254) provides an access token for the identity, which the application uses to authenticate to the configuration endpoint. In a real-world scenario, if a VM is recreated, the user-assigned identity is simply reattached, and the new VM immediately obtains tokens without any manual 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?
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 user-assigned managed identity that can exist independently of any single VM. — A user-assigned managed identity is an Azure resource that exists independently of any VM, unlike a system-assigned identity which is tied to the VM lifecycle. This independence ensures the identity persists even when a VM is deleted and recreated, maintaining continuous access to the configuration endpoint. By creating a user-assigned managed identity, the administrator decouples the identity from any single VM, satisfying the requirement that the identity must keep working after VM deletion and recreation.
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 →
Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
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