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    Taxonomy is used to classify and organize content.  When creating content, you may wish to have the page filed under a different section of the website by specifying the content type as a certain term. 
    Taxonomy can have any number classification terms.  The taxonomy will be applied to a content type and can be made to be required.
An admin my create new Taxonomy types and add new terms to existing taxonomy.  The Taxonomy Manager can be found at Administer -> Content Management -> Taxonomy.
 From this menu, new taxonomy can be created, existing taxonomy can be edited, and new terms can be created.  Clicking on “list terms” will display all the created terms for this vocabulary type.