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This will append all commands to ths logfile.Not sure where the file gets created. Pls see the man page for the same.
the file gets created in the directory from you execute the command,
if it is getting executed from your profile then it is obviously the user's home directory.
But you have some subtle points to be noted when using script command.
a) the file gets created in the home directory so the user has an option of corrupting the file anytime
one way of handling this is use script -a <path>
where files are continously taken backup from the path
b) script command is implemented using pseudo master-terminal system so you are not working on the teletype granted to you by login program; you have the control on the line you are working, so one who is playing with that can easily identify from tty and ps -ef | grep login commands whether he is working on a abstraction of script command or in plain teletype line
c) you need to execute exit command twice to logout; that gives a hint to be careful the next time the user logs in
these are the things you need to consider when you are using script command to track.