The fundamental theorem on representation{ nite quivers in 6] indicates a close connection between the representation type of a quiver and the de niteness of a certain quadratic form. Later on a similar connection has been discovered in other classi cation problems of representation theory. It turns out that there is a strong interaction of quadratic forms and the reperesentation theory of nite{dimensional algebras. Given a quasi{hereditary algebra A, instead of the complete module category, one studies the {good module category F() consisting of A{modules which have a ltration by standard modules. Analogously to a complete module category, one can associate quadratic forms (may also called Euler form and Tits form) with the {good module category F(). The aim of this paper is to study {good module categories in term of these forms. First, we study {directing and {omnipresent modules in the {good module category F() over a quasi{hereditary algebra A and show that the existence of a {directing and {omnipresent module in F() implies that all standard modules have projective dimension at most 2. By using the process of standardization introduced in 5], the study of {directing modules in F() can be reduced to the study of those over certain quasi{hereditary algebras which admit a {directing and {omnipresent module. For these quasi{hereditary algebras the quadratic forms associated with their {good module categories are well behaved. By applying this reduction, we show that F() is nite (i.e. there are only nitely many isomorphism classes of indecomposables in F()) if all indecomposables in F() are {directing. Note that this statement has been proved in 4] in a more general situation in connection with certain vector space category, but the proof presented here is more straightforward. Further, if A is connected and F() has a preprojective component, then the weak positivity of the Tits form of F() implies the niteness of F(). Secondly, we study {good module categories over hereditary algebras. Note that hereditary algebras as a particular class of quasi{hereditary algebras admit the following description: An algebra is hereditary if and only if it is quasi-hereditary Supported by Alexander von Humboldt Foundation