What are the capabilities of DAM to pen down?

what is the best practice to organize the assets in dam aem 6.3 ?? As per the asset type or assign under one folder? Can you make me understand with any example?? To more precise with the question ? All the assets under one pdf folder or it should be assign as per the asset typ

If we are not following the approach with defining of L2 and L3 i.e. category and sub category and only define them under tags in the url of the website in the dam ? will it going to work or is any other parameters we can follow. Can some one give proper insight on that

If we are not following the approach with defining of L2 and L3 i.e. category and sub category and only define them under tags in the url of the website in the dam ? will it going to work or is any other parameters we can follow. Can some one give proper insight on that

Can we give the pdf path in dam with just tag name approach, by not giving the L2 and L3 Category