How does Magento handle customer accounts and authentication?

Magento handles customer accounts and authentication by providing secure authentication and account management. This includes features that ensure customer data is protected through encrypted passwords, secure sessions, and compliance with standards that maintain user privacy and security. Customers can create accounts, manage their personal information, track orders, and handle returns, all through a secure and user-friendly interface.

This robust account management system also supports different roles and permissions, allowing for a tailored experience for both customers and administrators. Moreover, Magento's authentication mechanisms prevent unauthorized access to customer accounts, ensuring that sensitive information remains confidential.

The other options present limitations that do not align with Magento's capabilities or best practices in e-commerce. Allowing only guest checkouts restricts the user experience and customer loyalty, while sharing passwords undermines security. Eliminating account creation entirely disregards the benefits of personalized customer engagement and tailored services, which are integral to Magento's functionality.