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AWS CloudFormation manages resources by creating, managing, and updating what?

  1. Stacks

  2. Templates

  3. Log Files

  4. Resources

The correct answer is: Stacks

AWS CloudFormation manages resources primarily through the use of stacks. A stack is a collection of AWS resources that are created, managed, and updated as a single unit. When you create a stack, CloudFormation provisions the resources described in the template, which defines the infrastructure needed for your application, such as EC2 instances, security groups, and databases. Using stacks allows for easier management of resources because all of the resources specified in the template can be treated as one cohesive unit. You can create, update, or delete the entire stack in one go, ensuring consistency and trackability of your infrastructure. While templates are necessary for defining the resources and the configuration within those stacks, they are not the entities that manage the resources themselves. Log files pertain to tracking activities and events but do not directly relate to resource management. Resources refer to the individual AWS services and elements that you can provision, but it is the stack that provides the framework for collective management of these resources. Thus, the concept of stacks encapsulates the management capabilities of CloudFormation, making it the key answer to the question regarding how AWS CloudFormation handles resource management.