File organization uses storage, organization, and access of data stored in files. There are two main types of file organization: sequential and multitable clustering. Sequential organization stores records in order of a search key, while multitable clustering stores related records from different relations together to minimize disk accesses. Proper file organization is important for database efficiency. Common file functions in C include fopen(), fclose(), fread(), fwrite(), getc(), putc(), getw(), and putw() to open, close, read, write, and access data in text and binary files.