What is the workspace used for

Workspaces contain a large number of settings that should reflect your company's process. Just as there are many processes in your company, there can be many workspaces. 

Projects and tasks are then created in these workspaces.  Both projects and tasks are then governed by the workspace settings. The workspace can be managed either by a company administrator (chapter with company user rights) or by a user defined in the workspace administrators section (see chapter here).