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On large systems with many users, you often need to control the amount of disk space a user can use. Disk quotas are designed specifically for this purpose. Quotas, managed per partition, can be set for both individual users and for groups; quotas for the group need not be as large as the aggregate quotas for the individuals in the groups.
When files are created, both a user and a group own them; ownership of the files is always part of the metadata about the files. This makes quotas based on both users and groups easy to manage.