Here's an easy way to visualize what's happening with SheepShaver (and Basilisk II as well):
(see more at https://github.com/sentient06/Medusa/wi ... X-and-Unix
When you run the app, it looks for its preference file, first inside a .SheepVM bundle, then at ~/.sheepshaver_prefs
This text file (hidden in the Finder because of the . at the front) will tell the launched Sheepshaver app where to find all the other files it needs, and will configure all the available settings.
The only external files Sheepshaver needs to operate are the prefs file (in one of the two listed locations), a ROM file (which has a default location, but can also be anywhere/named anything in the prefs file), and at least one bootable disk image, which also needs to be listed in the prefs file.
Additional files that can be useful are the nvram file for settings persistence across reboots, and the keycodes file for remapping your keyboard. The first of these gets written as a . file, usually in the same place as your prefs file, the second needs to be in the same folder as the app itself, unless you change its location in the preferences file.
So from that, you can figure out what you need, and where you need to put it