A town full of monsters that uses scaring children as electricity is turned upside-down when a child (named Boo) accidentally ends up there. Monsters Inc is the name of the electricity company that Mike and Sulley work for.
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These monsters (like any others) are scared of children.
Boo was played by a little girl called Mary Gibbs (who was 2 and a half when they made the film). She was so young, they couldn't get her to sit still, so instead followed her around with a microphone as she played and crawled.
The bad guy, Randall's sidekick, Fungus was voiced by legendary actor Frank Oz. Frank has voiced children's characters from Cookie Monster (on Sesame Street), to Fozzie Bear (the Muppets).
Mike and Sulley (his full name is James P. Sullivan) are best friends, but they weren't always. In Monsters University, the movie shows us back when Mike and Sulley first met and they didn't like each other straight away.
The school of scaring in Monsters University is shaped like Cthulhu, a creature created by writer H.P. Lovecraft, thankfully he is not a real creature (but he sure is scary).
The dean of the school, Abby Hardscrabble had been the champion of the scare games four times in a row (she must've been good).