There are a variety of ways in reality (as usual)
There are two that I am known to use
OLE Linking and embedding
OLE is a specific type of field. You can either link or embed a file. Linking means only a reference to the other file is stored so if the other file is changed you get the changed file when you open via the database. The Embedded type of link actually put a copy of the other file in the database. If the original file is changed you do not get the changed version via the database.
Hyperlink is the other thing I use. Basically you just set of a hyperlink to the fiile like C:\MyDocuments\testFile.doc
You click on the hyper link and the file opens.
Really you need to consider what you are actually trying to do.
I have used the OLE method when I want to refer to documents that are likely to have fixed text that are changed rarely like Terms and Conditions
etc
I use Hyperlinking much more. This is particularly useful when you want to refere to lots of documents that could change.
I have a database that is used as a drawing search interface. There are something like 50,000 hyperlinks. Each refers to a specific drawing and clicking the hyperlink opens the drawing so that it can be viewed.
If you want the text in reports from the database in various combinations then a memo field may be the best option.
Like all things it is a game to try to pick the most appropriate
HTH
Len B