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What is a 'standalone' program?

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Hello folk and please pardon my ignorance.
I have been asked many times "what is the difference between a program installed with an installer and a standalone version?".

Thought it was one that had no 'folder' (STANDALONE >NO file logs, updates ....? ) and one that did have a folder ( INSTALLED ON THE HARD DRIVE ) but after searching the web am probably more confused than my questioners and have to admit that I do not convincingly know.

Also what are the advantages of one over the other ?

Can you help ?

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