- A
Use the HTTP action with Managed Identity authentication.
Why wrong: Managed Identity only works for resources in the same Microsoft Entra ID tenant as the Logic App. The external API is in a different tenant, so this will fail.
- B
Use the HTTP + Swagger connector to import the API definition.
Why wrong: The Swagger connector is used to parse an API definition but does not handle OAuth token acquisition automatically for cross-tenant scenarios.
- C
Use the HTTP action with Active Directory OAuth authentication, providing the tenant ID, client ID, and client secret.
This configuration allows the Logic App to obtain a token using Client Credentials flow and attach it to the request, even for a different tenant.
- D
Use the Azure Key Vault - Get secret action to retrieve a token.
Why wrong: Key Vault stores secrets, not tokens. You need to programmatically obtain the token using the client credentials.
AZ-204 Practice Question: Connect to and consume Azure services and third-party services
This AZ-204 practice question tests your understanding of connect to and consume azure services and third-party services. 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.
You are building an Azure Logic App that must call an external API secured with OAuth 2.0 Client Credentials flow. The external API is registered in a different Microsoft Entra ID tenant. You need to obtain an access token and add it to the request headers. Which action and authentication configuration should you use?
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
Use the HTTP action with Active Directory OAuth authentication, providing the tenant ID, client ID, and client secret.
Option C is correct because the HTTP action's Active Directory OAuth authentication type directly supports the OAuth 2.0 Client Credentials flow for cross-tenant scenarios. By providing the tenant ID, client ID, and client secret, the Logic App runtime can obtain an access token from the external tenant's token endpoint and automatically inject it into the Authorization header as a Bearer token. This is the only built-in authentication option in the HTTP action that handles the client credentials grant without custom code.
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.
- ✗
Use the HTTP action with Managed Identity authentication.
Why it's wrong here
Managed Identity only works for resources in the same Microsoft Entra ID tenant as the Logic App. The external API is in a different tenant, so this will fail.
- ✗
Use the HTTP + Swagger connector to import the API definition.
Why it's wrong here
The Swagger connector is used to parse an API definition but does not handle OAuth token acquisition automatically for cross-tenant scenarios.
- ✓
Use the HTTP action with Active Directory OAuth authentication, providing the tenant ID, client ID, and client secret.
Why this is correct
This configuration allows the Logic App to obtain a token using Client Credentials flow and attach it to the request, even for a different tenant.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use the Azure Key Vault - Get secret action to retrieve a token.
Why it's wrong here
Key Vault stores secrets, not tokens. You need to programmatically obtain the token using the client credentials.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Managed Identity with cross-tenant authentication, assuming it works across tenants, when in fact Managed Identity is strictly scoped to the resource's home tenant.
Trap categories for this question
Scenario analysis trap
The Swagger connector is used to parse an API definition but does not handle OAuth token acquisition automatically for cross-tenant scenarios.
Detailed technical explanation
How to think about this question
Under the hood, the HTTP action with Active Directory OAuth authentication sends a POST request to the tenant-specific OAuth 2.0 token endpoint (https://login.microsoftonline.com/{tenantId}/oauth2/v2.0/token) with grant_type=client_credentials, using the provided client ID and client secret. The returned access token is then cached by the Logic App runtime for the token's lifetime and automatically refreshed when expired. A real-world scenario where this matters is when a Logic App in Tenant A needs to call a secured API in Tenant B that has been pre-configured with a service principal and client secret grant.
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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Connect to and consume Azure services and third-party services — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Connect to and consume Azure services and third-party services — This question tests Connect to and consume Azure services and third-party services — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use the HTTP action with Active Directory OAuth authentication, providing the tenant ID, client ID, and client secret. — Option C is correct because the HTTP action's Active Directory OAuth authentication type directly supports the OAuth 2.0 Client Credentials flow for cross-tenant scenarios. By providing the tenant ID, client ID, and client secret, the Logic App runtime can obtain an access token from the external tenant's token endpoint and automatically inject it into the Authorization header as a Bearer token. This is the only built-in authentication option in the HTTP action that handles the client credentials grant without custom code.
What should I do if I get this AZ-204 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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Last reviewed: Jun 11, 2026
This AZ-204 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-204 exam.
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