They are called zygomycetes. They are mostly terrestrial and live in soil or on decaying plant and animal material. Black bread mold and mycorrhizae belong to this division. These sac fungi live in marine, freshwater, and terrestrial habitats. Half live with algae in symbiotic associations called lichens.
Some form mycorrhizae with plants.
Their club-like shape gives them the common name club fungus. Molds, Yeasts, Lichens, and Mycorrhizae A mold is a rapidly growing, asexually reproducing fungus that produces asexual spores. Later in life, the same fungus may reproduce sexually and produce zygosporangia, ascocarps, or basidiocarps. The mycelia of these fungi grow as saprobes or parasites on a great variety of substrates. An example is bread mold.