Software is generally divided into following types

Software that has been developed with an intention to solve a particular problem is called as application software. This software helps the users to achieve their specific tasks . By means of this application software, the computer is made useful and effective for the user. Application software can be categorized either as custom (created on the demand of a particular customer) or packaged (created with a motive to sale to the wide ranging public)
For example:- word processing software, database management software, spreadsheet

Software that manages the overall distribution and usages of hardware resources is called as system software. This software may contain set of one more programs (provided by the vendor of computer system) so as to control the functioning of a computer system. Application software is executed, read and stored after being enabled by the system software. It also acts as a bridge between various input-output devices. Internal working of computer system is also monitored by system software.

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