Permissions are allowed or denied by an object's owner and determine what actions an object (users, groups, or computer objects) can perform on specified files or folders.

Security descriptors are data structures that contain security information that define permissions associated with a file or folder.

Access control lists are the lists contained within a security descriptor that contain information on what actions users, groups, or computer objects can perform on the file or folder to which the security descriptor is applied. The security descriptor can contain the following two types of ACLs:

DACLs contain the list of SIDS for the users, groups, and computer objects who are allowed or denied access to perform actions on files or folders. DACLs contain zero or more access control entries (ACEs).

SACLs contain the list of SIDS for the users, groups, and computer objects for which successful or failed auditing events are logged. SACLs contain zero or more access control entries (ACEs).

ACEs are individual entries in either DACLs or SACLs:

Permission inheritance describes how permissions defined in security descriptors are propagated to an object from a parent object. Only inheritable permissions are inherited by child objects. When setting permissions on the parent object, you can decide whether folders, sub-folders, and files can inherit them with “Apply to this-folder, sub-folders, and files”.