Exam MB-820 Topic 1 Question 88 Discussion

In a single-tenant deployment architecture of Business Central on-premises, the following characteristics describe how the data is stored and how the Business Central Server is configured:
The application and the business data are stored in the same database (B): In a single-tenant architecture, each tenant (which typically corresponds to a single customer) has its own dedicated database. This database contains both the application objects (such as pages, reports, codeunits, etc.) and the business data (such as customer, vendor, and transaction records). This setup ensures that each tenant's data is isolated and can be managed independently.
The application and business data are stored in separate databases (D): While (B) is a characteristic of a single-tenant deployment, it's important to clarify that in some configurations, the application objects can be stored in a separate database from the business data. This approach can be used for easier maintenance and upgrades of the application code without affecting the business data. However, each tenant still has its own set of databases, maintaining the single-tenancy model.