The correct answer is that the 'identity' section assigns a user-assigned managed identity to the VM so it can access other Azure resources securely. This works because the ARM template references an existing managed identity resource by its resource ID, allowing the virtual machine to authenticate to Azure services like Key Vault or Storage without embedding any credentials in code or configuration. On the SC-900 exam, this concept tests your understanding of managed identity types: a user-assigned identity is an independent Azure resource that can be shared across multiple VMs, whereas a system-assigned identity is tied to a single VM and would show "type": "SystemAssigned" in the template. A common trap is confusing the two—remember that if you see a resource ID in the identity section, it is user-assigned, not system-assigned. Memory tip: "User-assigned = U-ID (unique identity resource); System-assigned = S-ID (single VM only)."
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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.
Refer to the exhibit. A security administrator is reviewing an Azure Resource Manager template for a virtual machine. What is the purpose of the 'identity' section shown?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
It assigns a user-assigned managed identity to the VM so it can access other Azure resources securely.
The identity section assigns a user-assigned managed identity to the virtual machine, allowing it to authenticate to Azure services without storing credentials. Option B is wrong because system-assigned managed identity would have 'type': 'SystemAssigned'. Option C is wrong because it does not create a new identity; it references an existing one. Option D is wrong because it does not enable MFA.
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.
✗
It enables system-assigned managed identity for the VM.
Why it's wrong here
The type is 'UserAssigned', not 'SystemAssigned'.
✗
It configures multi-factor authentication for the VM.
It creates a new managed identity named 'id1' in the resource group.
Why it's wrong here
The identity must be created separately; this only assigns an existing one.
✓
It assigns a user-assigned managed identity to the VM so it can access other Azure resources securely.
Why this is correct
User-assigned managed identities allow VMs to authenticate to Azure services without secrets.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 SC-900 question in full detail.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: It assigns a user-assigned managed identity to the VM so it can access other Azure resources securely. — The identity section assigns a user-assigned managed identity to the virtual machine, allowing it to authenticate to Azure services without storing credentials. Option B is wrong because system-assigned managed identity would have 'type': 'SystemAssigned'. Option C is wrong because it does not create a new identity; it references an existing one. Option D is wrong because it does not enable MFA.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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