Linux allows multiple users to access the system simultaneously. Users are uniquely identified by their UID, and can be regular users or superusers. Superusers have full access while regular users have limited access. The system administrator manages users and groups. Users can be created with the useradd command and assigned to primary and supplementary groups. User properties like login, UID, home directory and shell are set during creation. Users can be modified, locked, unlocked and deleted using related commands. Groups organize users and are managed using groupadd, groupmod, and groupdel. Permissions allow controlling access for users and groups.