SC-300 domain - 25% of the exam

Plan and Implement Workload Identities

Plan and Implement Workload Identities is 25% of the Microsoft Identity and Access Administrator (SC-300) (SC-300) exam. These are the objectives it covers, each with practice questions and worked explanations.

Objectives in this domain

Sample question from this domain

Free samplePlan and Implement Workload Identitiesmedium

An Azure virtual machine runs a single application that must read secrets from Azure Key Vault without any credentials stored on the host. The identity team requires that the application's identity be created when the virtual machine is created and removed automatically when the virtual machine is deleted, with no separate object to clean up. Which workload identity should be configured on the virtual machine?

  • AA system-assigned managed identity enabled directly on the virtual machine so its lifecycle is tied to the virtual machine resource. Correct
  • BA user-assigned managed identity created in a resource group, then attached to the virtual machine so the application can request tokens for Key Vault.
  • CAn app registration with a client secret stored in Key Vault, with the secret read by the application at start-up to authenticate.
  • DA service principal created manually with a certificate credential, then referenced by the application running on the virtual machine.
A system-assigned managed identity is bound to a single Azure resource and is created and deleted automatically with that resource, requiring no managed credentials. A system-assigned managed identity is provisioned in Microsoft Entra ID directly on the Azure resource and shares its lifecycle: it appears when the resource is enabled and is removed when the resource is deleted. The platform rotates the underlying credential, so the application acquires tokens without any secret on disk. User-assigned identities, app registrations, and manual service principals all have independent lifecycles or managed credentials, so none satisfy the tie-to-the-resource and no-cleanup requirements.

Why A is correct: A system-assigned managed identity is created with the virtual machine and deleted automatically when the virtual machine is deleted, giving credential-free token access bound to that one resource's lifecycle.

Why B is wrong: A user-assigned managed identity has an independent lifecycle and is not deleted with the virtual machine, so it leaves a standalone object to clean up, which the requirement forbids.

Why C is wrong: An app registration relies on a client secret the team must manage and rotate, which contradicts the no-stored-credentials requirement and is not tied to the virtual machine lifecycle.

Why D is wrong: A manually created service principal with a certificate is an independent object whose credential and lifecycle must be maintained separately, so it is neither credential-free nor automatically removed with the virtual machine.

Other domains in this exam

See also the SC-300 cert hub, the study guide, and the cheat sheet.

Examworthy is not affiliated with or endorsed by Microsoft. Original, blueprint-aligned practice material only.