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Test Repository versus Test Sets
Test Sets are simple, flat lists of Tests that you can use as basis for creating Test Executions or Test Plans. Since the Tests are grouped in some logical way (e.g., grouping all Tests related with regression testing or security or all Tests for a specific component or some high-level feature/business case), a Test can be part of different Test Sets. Test Sets can also be used as a dynamic way to cover requirements.
The Test Repository concept, on the other hand, is similar to the same way you would organize your documents and files in your computer.
Each approach offers advantages and have some possible drawbacks, but they can also work in a complementary way. If used properly, you can use both in more advanced usage scenarios such as using Test Sets to cover complex requirements and using the Test Repository to organize the Tests.
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