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Where is the user's home directory that was created using adduser command in Ubuntu Server 16.04 LTS? Or I need to create it itself?

user393877
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--home DIR Use DIR as the user's home directory, rather than the default specified by the configuration file. If the directory does not exist, it is created and skeleton files are copied.

adduser and addgroup add users and groups to the system according to command line options and configuration information in /etc/adduser.conf. source

Stefan Mihajlovic
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