Sorry for the noob question but for some reason the answer has eluded me. How do I create and manage categories?
I have looked all through these areas in the administration back end but I just can't find it.

Settings | Layout | Comments Approval List | Payment Modules | Stats And Download Logs | Transactions | Product List | Coupons | Inventory | Search Log | Tax | Shipping Conditions | Customize Emails
Please help. . .