They are saprophytes, parasites and some are mutualistic.
Reproduction is accomplished by the release of sexual or asexual spores.
Under favorable conditions asexual spores are produced by the millions and dispersed over a large area. These are mostly terrestrial fungi that live in soil or on decaying plant or animal material. These are sac fungi. The sexual reproductive structure is the asci , a small sac like structure. The mushroom, shelf fungi, puffballs and stink horns are examples of this division.