Use Common Location for All Database Files

Use Common Location for All Database Files—This option requires you to
specify a new directory for the Oracle home. All the database files are created in
this location. Later, you can make modifications to database file names and
locations.
If you specify the Use Oracle Managed Files option, Oracle Database will directly
manage operating system files comprising an Oracle database. You specify the
default location, called a database area, for all your files. Oracle Database
thereafter automatically creates and deletes files in this location, as required.
When you select this option, you delegate the complete management of database
files to the database. You no longer have to specify the file names, their location, or
their sizes.
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