Home Groups is a Windows 7 replacement for workgroups. It's a group of computers that are associated with each other for the purpose of printer and file sharing. The only differences between home group and workgroup are 1) you need a password to join a home group 2) home groups are not backwards compatible. Vista and XP users cannot join a home group. The more people you have in a home group, the slower the file sharing will become. Only use this with less than 10 users. Microsoft gives you a larger number, but your network slows down too much if a large number of people are doing this type of file sharing.
In a business environment usually file permissions are associated with domain accounts. A domain is large group of computers that share files usually stored on a computer designed to store files. The files are usually backed up to another disk or tape drive.
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