Question 1mediummulti select
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Quick Answer
The correct answer is to configure diagnostic settings for the Azure AD audit logs to send them to a Log Analytics workspace with a retention policy of 1095 days. This meets the three-year audit log retention requirement because Log Analytics allows you to set a retention period of up to 730 days by default, but for longer retention like 1095 days, you must enable the “Archive to storage account” or adjust the workspace’s retention policy directly, ensuring compliance with regulatory needs. On the AZ-104 exam, this question tests your ability to pair Azure AD Connect for identity synchronization, MFA for admin security, custom RBAC roles for granular access control, and diagnostic settings for long-term log retention—a common trap is confusing Azure AD audit logs with activity logs or forgetting that Log Analytics retention defaults to 30 days. Remember the mnemonic “CARM” for the four solutions: Connect (Azure AD Connect), Auth (MFA), Roles (custom RBAC), and Monitor (diagnostic settings with 1095-day retention).
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.
You are an Azure administrator for a company that is planning to implement a new Azure environment. The company has the following requirements: - Users must be able to sign in using their on-premises Active Directory credentials. - Multi-factor authentication (MFA) must be enforced for all administrative users. - Access to Azure resources must be controlled using role-based access control (RBAC) with custom roles. - Audit logs must be retained for a minimum of three years. Which four of the following solutions should you implement to meet these requirements? Choose all that apply. (There are four correct answers.)
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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
✓
Deploy Azure AD Connect to synchronize identities from on-premises Active Directory to Azure AD.
Azure AD Connect synchronizes on-premises Active Directory identities to Azure AD, enabling users to sign in with their on-premises credentials. This meets the requirement for single sign-on using existing directory credentials.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure AD roles (which manage Azure AD itself) with Azure RBAC roles (which manage Azure resources), leading candidates to incorrectly select 'Create a custom RBAC role in Azure AD' instead of the Azure Resource Manager option.
Detailed technical explanation
How to think about this question
Azure AD Connect uses the DirSync protocol and synchronizes objects via the Synchronization Service Manager. The custom RBAC role in Azure Resource Manager is defined using JSON with Actions, NotActions, DataActions, and AssignableScopes, and is stored in the Azure Resource Manager metadata service, not in Azure AD. Diagnostic settings for Azure AD audit logs can be configured to stream to a Log Analytics workspace, where retention is set at the workspace level (up to 730 days by default, but extendable to 1095 days via a dedicated tier or export to Azure Storage).
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Manage Azure Identities and Governance — study guide chapter
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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: Deploy Azure AD Connect to synchronize identities from on-premises Active Directory to Azure AD. — Azure AD Connect synchronizes on-premises Active Directory identities to Azure AD, enabling users to sign in with their on-premises credentials. This meets the requirement for single sign-on using existing directory credentials.
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.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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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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