Every file has permissions that specify who can access the file and what they can do with it.
Here is some sample output from ls -l
So, tom is the owner of the file called tmp. That login id has read, write, and execute permission on the file.
The group of the user who owns the file is group1. All login ids that belong to the group have read and write permission.
All other login ids only have read permission on the file.
Execute permission on a file means that it can be run - it is most likey a shell script or other program (i.e. perhaps an executable or a Perl script).
Notice that tmp is a directory - how can you tell this?
Execute permission on a directory means that you can cd to it.