1. A database is an organized collection of related data stored electronically. It allows for efficient storage and retrieval of information.
2. Data is stored in a database in records that contain fields and items. Records contain related data items grouped together, while fields are areas within records reserved for specific data types.
3. There are different types of files like master files, transaction files, and backup files that are used for different purposes in a database system. Master files contain the most complete data while transaction files contain temporary data used to update master files.