Quick Answer
The correct answer is Import mode. This is because Power BI’s Import mode loads the Excel data into the VertiPaq in-memory engine, enabling the full suite of transformations, measures, and visualizations required for a robust report. When connecting to an Excel file on a network drive that is updated manually each morning, Import mode allows you to refresh the dataset on demand or schedule a refresh, ensuring the report always reflects the latest data when opened. On the PL-300 exam, this scenario tests your understanding of data connectivity modes for flat files versus live sources; a common trap is choosing DirectQuery, but that mode only works with queryable databases like SQL Server, not static files. Remember the memory tip: “Flat file? Import it. Live query? Direct it.” This distinction is critical for passing the exam.
This PL-300 practice question tests your understanding of prepare the data. Examine the command output carefully: the correct answer depends on what the output actually shows, not on general recall alone. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You need to connect Power BI to an Excel file stored on a local network drive. The file is updated manually each morning. You want the Power BI report to always show the latest data when opened. Which data connectivity mode should you choose?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "always"
Why it matters: Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
Live Connection
Why wrong: Live Connection is used with Analysis Services or Power BI datasets, not Excel files.
Dual
Why wrong: Dual mode is for hybrid tables; Excel files only support Import.
Import
Import mode loads the data into the model and can be refreshed on a schedule to get the latest file.
DirectQuery
Why wrong: DirectQuery is not supported for Excel data sources.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Import
Option C (Import) is correct because Power BI must load the Excel data into its internal VertiPaq engine to support the full range of transformations and visualizations. Since the file is on a local network drive and updated manually, Import mode allows you to refresh the dataset on demand or via a scheduled refresh, ensuring the report always shows the latest data when opened. DirectQuery and Live Connection are not applicable because they require a live queryable data source (like SQL Server or Analysis Services), not a flat file.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Live Connection
Why it's wrong here
Live Connection is used with Analysis Services or Power BI datasets, not Excel files.
Dual
Why it's wrong here
Dual mode is for hybrid tables; Excel files only support Import.
Import
Why this is correct
Import mode loads the data into the model and can be refreshed on a schedule to get the latest file.
Clue confirmation
The clue word "always" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
DirectQuery
Why it's wrong here
DirectQuery is not supported for Excel data sources.
Common exam traps
The trap here is that candidates often confuse DirectQuery with the ability to query any file-based source, but Microsoft explicitly restricts DirectQuery to SQL-based and OData sources, not Excel or CSV files.
Detailed technical explanation
Under the hood, Import mode uses the VertiPaq in-memory columnar engine to compress and store data, enabling fast interactive queries. When you refresh an Import dataset from an Excel file on a network drive, Power BI Desktop or the Power BI service uses the Power Query engine to read the file via the local data gateway (if on the service), applying any transformations before loading. A subtle behavior is that if the Excel file is open by another user, the refresh may fail due to file locking, so scheduling refreshes during off-hours is a common real-world workaround.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
What to study next
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FAQ
Prepare the data — This question tests Prepare the data — Read the scenario before looking for a memorised answer..
The correct answer is: Import — Option C (Import) is correct because Power BI must load the Excel data into its internal VertiPaq engine to support the full range of transformations and visualizations. Since the file is on a local network drive and updated manually, Import mode allows you to refresh the dataset on demand or via a scheduled refresh, ensuring the report always shows the latest data when opened. DirectQuery and Live Connection are not applicable because they require a live queryable data source (like SQL Server or Analysis Services), not a flat file.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Yes — watch for: "always". Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This PL-300 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PL-300 exam.
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