Computer software is broadly divided into two categories based on what it is designed to do. System software manages and controls the computer's own hardware and internal resources so that the machine can function at all, while application software is created to help the end user carry out a specific task, such as typing a document, editing a photo, or browsing the internet.
The defining difference lies in who the software serves. System software (like an operating system or a device driver) is written and supplied by the computer's manufacturer or platform provider specifically to keep the machine running: managing memory, coordinating hardware, and providing the platform on which everything else operates. Application software, on the other hand, is installed afterward by the user to perform a chosen task and depends on the system software beneath it to work.
The ability to multitask, minimal storage size, and having cache memory are not features that distinguish one category from the other; both system and application software can multitask, vary in size, and rely on cache memory. What genuinely separates them is that system software consists of the unique, foundational programs installed to help the computer itself run, while application software is built on top of that foundation to serve a user's specific needs.
Exam tip: whenever a question contrasts system software with application software, look for the option that describes "running the machine" versus "performing a user task" rather than technical features like speed or size.