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Running multiple instances and databases on one server

How to run multiple instances and mulitiple databases on a single server? Sometimes I have faced an interview question like "How many databases you are handling?" Please clarify.

I was reading your answer regarding the Oracle instance. I have one doubt. How to run multiple instances and mulitiple databases on a single server? Sometimes I have faced an interview question like "How many databases you are handling?" Please clarify. On a single server how to run multiple Oracle instances and multiple databases?
If you use the Database Configuration Assistant (DBCA) to create a new database, the server can be set up just fine to run more than one instance on the same server. I typically have more than one instance on my database servers. Each of these instances connects to a different database. So this is possible. One big tip is to make sure that your database datafiles are located in different directories from another database.

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