1) Databases are electronic collections of related data that help organize information and allow for sharing across applications. They have advantages like storing large amounts of data and promoting data integrity but also challenges like requiring database experts and specialized software.
2) Databases contain fields, records, tables, and a primary key. Fields make up records, which are grouped in tables. The primary key uniquely identifies each record. Common database types are relational, object-oriented, and multidimensional.
3) Database management systems allow users to create databases, enter data, view and sort data, extract data through queries, and output reports. They improve data management.