- A
Use the 'HTTP' action with 'OAuth 2.0' authentication and configure the authorization endpoint, client ID, and client secret.
Correct. The HTTP action's OAuth2 authentication supports the authorization code grant, including interactive user consent.
- B
Use the 'HTTP + Swagger' action with 'Identity Provider' authentication.
Why wrong: The HTTP + Swagger action is used for APIs with a Swagger definition, not specifically for OAuth2 with interactive flow.
- C
Use the 'API Connection' action with a custom connector that uses OAuth 2.0.
Why wrong: Custom connectors are more complex to create and maintain, and are not necessary for a simple OAuth2 call.
- D
Use the 'HTTP' action with 'Managed identity' authentication.
Why wrong: Managed identity is used for non-interactive authentication to Azure resources, not for interactive user consent.
Quick Answer
The correct choice is the HTTP action with OAuth 2.0 authentication, because it is the only built-in Logic App action that natively implements the OAuth 2.0 authorization code grant flow, including interactive user consent and automatic token lifecycle management. This action handles the redirect to the authorization endpoint, the token exchange, and the silent refresh of access tokens, which directly minimizes development effort while securely managing credentials. On the AZ-204 exam, this scenario tests your understanding of how to integrate external APIs that require delegated user consent without writing custom code; a common trap is choosing the HTTP action with Active Directory OAuth instead, which is designed for client credentials flow, not interactive user sign-in. Remember the key distinction: authorization code grant needs user interaction, so the built-in OAuth 2.0 authentication type is the only one that provides the redirect URI handling automatically. A helpful memory tip is “Code needs Consent, so use the OAuth 2.0 type” to distinguish it from the client credentials flow.
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 that uses the OAuth 2.0 authorization code grant. The API requires the user to sign in interactively to grant consent. You want to minimize development effort and securely manage the token lifecycle. Which built-in action and authentication method should you use?
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
Use the 'HTTP' action with 'OAuth 2.0' authentication and configure the authorization endpoint, client ID, and client secret.
Option A is correct because the 'HTTP' action with 'OAuth 2.0' authentication type in Azure Logic Apps is specifically designed to handle the authorization code grant flow, including interactive user consent. It manages the token lifecycle (acquisition, refresh, and storage) automatically, minimizing development effort. You only need to configure the authorization endpoint, client ID, and client secret, and the runtime handles the redirect and token exchange.
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 'OAuth 2.0' authentication and configure the authorization endpoint, client ID, and client secret.
Why this is correct
Correct. The HTTP action's OAuth2 authentication supports the authorization code grant, including interactive user consent.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use the 'HTTP + Swagger' action with 'Identity Provider' authentication.
Why it's wrong here
The HTTP + Swagger action is used for APIs with a Swagger definition, not specifically for OAuth2 with interactive flow.
- ✗
Use the 'API Connection' action with a custom connector that uses OAuth 2.0.
Why it's wrong here
Custom connectors are more complex to create and maintain, and are not necessary for a simple OAuth2 call.
- ✗
Use the 'HTTP' action with 'Managed identity' authentication.
Why it's wrong here
Managed identity is used for non-interactive authentication to Azure resources, not for interactive user consent.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'Managed identity' (which is for Azure AD resources without user interaction) with OAuth 2.0 flows that require interactive consent, or they overcomplicate the solution by choosing a custom connector when the built-in 'HTTP' action already supports the authorization code grant natively.
Detailed technical explanation
How to think about this question
The OAuth 2.0 authorization code grant flow involves the user being redirected to the authorization server, authenticating, and consenting, after which an authorization code is returned. The Logic Apps runtime then exchanges this code for an access token and optionally a refresh token, storing them securely in the workflow's state. The 'HTTP' action with OAuth 2.0 authentication abstracts this entire process, including token refresh, which is critical for long-running workflows that may need to call the API multiple times.
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.
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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Connect to and consume Azure services and third-party services practice questions
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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 'OAuth 2.0' authentication and configure the authorization endpoint, client ID, and client secret. — Option A is correct because the 'HTTP' action with 'OAuth 2.0' authentication type in Azure Logic Apps is specifically designed to handle the authorization code grant flow, including interactive user consent. It manages the token lifecycle (acquisition, refresh, and storage) automatically, minimizing development effort. You only need to configure the authorization endpoint, client ID, and client secret, and the runtime handles the redirect and token exchange.
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.
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-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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