If you are using Terraform Enterprise or Cloud Workspaces, how should you think of their working directories relative to Open Source?

• A. They are separate working directories
• B. They share the same working directory
• C. They are equivalent to separate modules
• D. Each workspace uses its own backend

Answer: (A)

Isolation of execution and state is the key idea. In Terraform Cloud/Enterprise, each workspace runs in its own isolated context and has its own backend state. Open Source typically uses a single working directory for the configuration, with its state stored in the backend you configure for that project. In Cloud/Enterprise, you should think of each workspace as its own separate working directory, even if several workspaces point to the same code repository. This means runs and state aren’t shared across workspaces; each workspace maintains its own state and backend settings. You can reuse the same configuration across multiple workspaces, but their state and execution environments remain distinct.