Which backend option provides remote state with locking and is commonly used with Terraform Cloud?

• A. Local backend
• B. Remote backend with Terraform Cloud/Enterprise
• C. S3 backend without DynamoDB
• D. Consul backend

Answer: (B)

In Terraform, the backend determines where the state is stored and how it’s accessed. Remote state with locking is essential for teamwork because it stores the state in a central place and prevents multiple people from making conflicting changes at the same time. When you use Terraform Cloud, the remote backend with Terraform Cloud/Enterprise is the standard way to store this state remotely and get automatic locking and synchronization across your team.

This option is the best because it provides both remote storage and built-in locking, which are exactly what Terraform Cloud is designed to offer—safe, collaborative management of infrastructure state. Local backends stay on your machine, so there’s no remote access or locking. An S3 backend without DynamoDB lacks locking, so concurrent runs can conflict. A Consul backend can store state but isn’t the typical, integrated choice with Terraform Cloud.