Terms and Term Sets in SharePoint

• A term is a word or a phrase that can be associated with an item.  A term set is a collection of related terms.
• Managed metadata is a way of referring to the fact that terms and term sets can be created and managed independently from the columns themselves.
• There are Local Term Sets and Global Term Sets, one created within the context of a site collection and the other created outside the context of a site collection, respectively.
• There are several ways; however the most common is to use the Term Store Management Tool.
• Through the UI, the most common use is through the managed metadata list column which allows you to specify the term set to use. It also related to searching and enhancing the user search experience.