1. The document discusses how data is organized in a database system using a hierarchy from the bit level up to files, records, fields, and databases.
2. It describes some problems with traditional file-based data storage like redundancy, inconsistency, and lack of flexibility. A database addresses these issues through centralization of data.
3. The key components of a database system are described as people, hardware, software, and data. The database management system (DBMS) acts as an interface between users, applications, and the stored data.