Types of Software: Utility, Open Source and Freeware
Exam notes on types of software: system and application software, utility programs, and freeware, shareware, open source and proprietary licences with examples.
By GK24 Editorial Team· Published · 4 min read

A computer without software is a box of metal and silicon. Software is the set of instructions that tells the hardware what to do, and exam papers divide it twice over: once by the job it does, into system software and application software, and once by the licence it carries, into proprietary, freeware, shareware and open source. Candidates lose marks because the two divisions are mixed up: a program can be a utility by its job and freeware by its licence at the same time. Keep the two questions apart and this topic becomes easy marks in the Computer Awareness section.
System software and application software
System software runs the machine itself and gives other programs a place to run. It includes the operating system such as Windows, Linux, macOS or Android; device drivers, which let the operating system talk to a printer or a graphics card; language translators, namely the assembler, the compiler and the interpreter; and utility programs. Firmware is a special case: software written permanently into a chip, such as the BIOS on a motherboard, so it sits between hardware and software. Application software is what the user actually opens to get work done. It is either general purpose, like a word processor, a spreadsheet, a presentation tool, a browser or a database package, or custom built for one job, like a railway reservation system or a bank's core banking software.
Utility software: the housekeeping programs
Utility software, also called service software, is counted under system software. It does not create documents; it keeps the machine in order. The standard examples are antivirus programs, the disk defragmenter that rearranges scattered pieces of files so they can be read faster, disk cleanup that removes temporary files, file compression tools, backup and restore tools, file managers, disk partitioning tools and diagnostic programs. A frequently asked point is that a compiler is not a utility; it is a language translator, and both sit under system software.
Software by licence
| Type | Cost | Source code | Examples |
|---|---|---|---|
| Proprietary or commercial | Paid licence | Closed | Microsoft Windows, MS Office, Tally |
| Freeware | Free of cost | Closed | Adobe Acrobat Reader, Skype, Google Chrome |
| Shareware | Free trial, then paid | Closed | WinZip, WinRAR, many mobile games |
| Open source | Usually free | Open, may be changed and shared | Linux, Mozilla Firefox, LibreOffice, GIMP, MySQL |
| Public domain | Free | Open, no copyright at all | Software whose copyright has been given up or has lapsed |
Freeware costs nothing but its code is locked: you may use it, not study or change it. Shareware is the "try before you buy" model, free for a trial period or with features held back until payment. Open source software is defined by the code being published under a licence that allows anyone to read it, change it and pass it on. The most common trap in a paper is to treat freeware and open source as the same thing; the difference is the source code, not the price.
Free software, open source and the licences
The movement behind open source began with the GNU Project, started by Richard Stallman in 1983, and the Free Software Foundation, which he set up in 1985. Its slogan explains the word free: free as in freedom, not as in free of charge. The foundation's licence, the GNU General Public License or GPL, carries the idea of copyleft, under which anyone who passes on a modified version must pass on the source code as well. The term open source itself dates from 1998, when the Open Source Initiative was founded to present the same idea in business language; its licences include the permissive MIT, BSD and Apache licences, which allow use in closed products. The Linux kernel, written by Linus Torvalds in 1991 and released under the GPL, is the standard example named in question papers, usually beside Mozilla Firefox, LibreOffice, GIMP, Apache and MySQL.
Open source in India
The Government of India adopted a Policy on Adoption of Open Source Software in 2015, under which government departments must consider open source alternatives when buying software. BOSS, Bharat Operating System Solutions, is an Indian Linux distribution built on Debian by the Centre for Development of Advanced Computing (C-DAC), and it comes in versions for schools and for servers. Papers also ask about the translators: an assembler turns assembly language into machine code, a compiler converts a whole high-level program into machine code in one go and reports all errors together, while an interpreter translates and runs one statement at a time, which makes it slower but easier to debug.
Exam Point of View
Two kinds of question come from this topic. The first asks you to classify a named program: is MS Word application software, is a disk defragmenter a utility, is Linux an operating system, is BIOS firmware. The second asks for the licence: freeware against open source is the favourite trap, because candidates read free of cost as open source when the real test is whether the source code is published. Expect a direct question on shareware, identified by the trial period, and on the pair Stallman and Torvalds, where 1983 and the GNU Project belong to the first and 1991 and the Linux kernel to the second. Licence names are asked as a set, so keep the GPL apart from the permissive MIT, BSD and Apache licences. C-DAC with BOSS and PARAM, and the 2015 policy, are the Indian additions.
Important Facts
| Two functional types | System software and application software |
|---|---|
| Utility software | Part of system software: antivirus, defragmenter, disk cleanup, compression, backup |
| Firmware | Software written permanently into a chip, such as the BIOS or UEFI |
| Language translators | Assembler, compiler and interpreter |
| Compiler | Translates the whole high-level program at once and reports all errors together |
| Interpreter | Translates and runs one statement at a time; slower but easier to debug |
| Freeware | Free of cost, source code closed: Adobe Acrobat Reader, Skype, Google Chrome |
| Shareware | Free for a trial period, then paid: WinZip, WinRAR |
| Open source | Source code published and may be changed: Linux, Firefox, LibreOffice, GIMP, MySQL |
| GNU Project | Begun 1983 by Richard Stallman; Free Software Foundation 1985 |
| GNU General Public License | Copyleft licence; a modified version must carry its source code |
| Linux kernel | Written by Linus Torvalds in 1991, released under the GPL |
| Open Source Initiative | Founded in 1998 |
| BOSS | Bharat Operating System Solutions, Debian-based, developed by C-DAC |
| Indian policy | Policy on Adoption of Open Source Software for Government of India, 2015 |
Practice MCQs on this topic
Software that controls the hardware of a computer and provides a platform on which other programs run is called:
- A.Utility software
- B.Firmware
- C.System software
- D.Application software
Show answer
Explanation
The correct answer is C, system software. System software manages the machine itself and gives other programs a place to work: it includes the operating system, device drivers, the language translators and the utility programs. Option A is wrong because utility software is only one part of system software, the housekeeping part such as antivirus and disk defragmenter, and it does not by itself provide a platform. Option B is wrong because firmware is the software written permanently into a chip, such as the BIOS on a motherboard, so it is tied to one piece of hardware rather than being the general platform. Option D is wrong because application software is what the user opens to do work, such as a word processor or a browser, and it runs on top of system software rather than providing the platform.
Which of the following is an example of utility software?
- A.MS PowerPoint
- B.Disk defragmenter
- C.Oracle
- D.Linux
Show answer
Explanation
The correct answer is B, disk defragmenter. A defragmenter is a classic utility: it rearranges the scattered pieces of files on a disk so that the drive can read them in fewer movements, which is housekeeping work rather than work the user set out to do. Option A is wrong because MS PowerPoint is general purpose application software, a presentation package. Option C is wrong because Oracle is a database management system, again application software, even though it is used by programmers rather than ordinary users. Option D is wrong because Linux is an operating system, which is system software but not a utility; the operating system is the platform, while utilities are the small service programs that maintain it. Antivirus, disk cleanup, backup tools and file compression tools are the other standard utilities to remember.
Software that is distributed free of cost but whose source code is not made available to users is called:
- A.Open source software
- B.Shareware
- C.Public domain software
- D.Freeware
Show answer
Explanation
The correct answer is D, freeware. Freeware costs the user nothing, but the licence allows only use: the source code stays with the owner, so the program cannot be studied, modified or redistributed in a changed form. Adobe Acrobat Reader, Skype and Google Chrome are the examples usually named. Option A is wrong because open source software is defined by exactly the opposite feature, a published source code that may be read, changed and passed on. Option B is wrong because shareware is free only for a trial period or in a cut-down version, after which payment is due. Option C is wrong because public domain software carries no copyright at all, so it may be used and altered without any licence. The trap in this question is to read free of cost as open source; the test is the source code.
Software distributed free for a limited trial period, after which the user must pay to continue using it, is known as:
- A.Freeware
- B.Public domain software
- C.Shareware
- D.Open source software
Show answer
Explanation
The correct answer is C, shareware. Shareware follows the try before you buy model: the publisher lets anyone download and use the program for a trial period, or in a version with some features locked, and asks for payment or registration if the user wants to go on. WinZip and WinRAR are the examples most often quoted. Option A is wrong because freeware never asks for payment at all, however long it is used. Option B is wrong because public domain software has no copyright holder to charge a fee. Option D is wrong because open source software is identified by an open source code rather than by a payment model; most open source programs are free, and none of them locks features behind a trial clock in the way shareware does. Remember shareware by the word trial.
The Linux kernel was developed by:
- A.Richard Stallman
- B.Dennis Ritchie
- C.Linus Torvalds
- D.Bill Gates
Show answer
Explanation
The correct answer is C, Linus Torvalds. Linus Torvalds, then a student in Finland, wrote the Linux kernel in 1991 and released it under the GNU General Public License, which is why Linux is the standard example of open source software in question papers. Option A is wrong but is the closest trap: Richard Stallman began the GNU Project in 1983 and founded the Free Software Foundation in 1985, and the GNU tools are combined with the kernel in a full system, yet he did not write the kernel. Option B is wrong because Dennis Ritchie created the C language and, with Ken Thompson, the Unix operating system, which Linux resembles but does not descend from. Option D is wrong because Bill Gates co-founded Microsoft, whose Windows is proprietary software, the opposite of the open source model.
The GNU Project, begun in 1983, and the Free Software Foundation were started by:
- A.Linus Torvalds
- B.Richard Stallman
- C.Eric Raymond
- D.Ken Thompson
Show answer
Explanation
The correct answer is B, Richard Stallman. Richard Stallman announced the GNU Project in 1983 to build a complete operating system made only of free software, and in 1985 he founded the Free Software Foundation to support it; he also wrote the GNU General Public License, which carries the copyleft condition that a modified version must be passed on with its source code. Option A is wrong because Linus Torvalds wrote the Linux kernel in 1991, eight years later. Option C is wrong because Eric Raymond was among the founders of the Open Source Initiative in 1998, which recast the same idea in business terms and is often confused with the Free Software Foundation. Option D is wrong because Ken Thompson worked on Unix at Bell Labs with Dennis Ritchie, which is a different story altogether.
Under which licence is the Linux kernel released?
- A.MIT License
- B.Apache License
- C.BSD License
- D.GNU General Public License
Show answer
Explanation
The correct answer is D, the GNU General Public License. The Linux kernel has been distributed under the GPL since its early versions, which is why anyone who ships a modified kernel must also make the modified source code available; this copyleft condition is the licence's defining feature. Options A, B and C each name a real open source licence, but all three are permissive rather than copyleft: the MIT, BSD and Apache licences allow the code to be taken into a closed, proprietary product without the changes being published. That difference, copyleft against permissive, is the point a paper is testing when it lists these four names together. Remember that the GPL came from the Free Software Foundation, while the permissive licences are associated with universities and the Apache Software Foundation.
BOSS (Bharat Operating System Solutions), the Indian GNU/Linux distribution, has been developed by:
- A.ISRO
- B.NIC
- C.C-DAC
- D.DRDO
Show answer
Explanation
The correct answer is C, C-DAC. Bharat Operating System Solutions is built on Debian GNU/Linux by the Centre for Development of Advanced Computing, the research organisation under the Ministry of Electronics and Information Technology that is also known for the PARAM series of supercomputers; BOSS comes in versions for schools, for desktops and for servers, with support for Indian languages. Option A is wrong because ISRO is the space agency and does not publish an operating system. Option B is wrong because the National Informatics Centre provides network and e-governance services to government departments rather than building a Linux distribution. Option D is wrong because the DRDO works on defence research and development. Pair C-DAC with both BOSS and PARAM, because papers ask for either.
Which of the following translates an entire high-level language program into machine code at one time?
- A.Interpreter
- B.Assembler
- C.Loader
- D.Compiler
Show answer
Explanation
The correct answer is D, compiler. A compiler reads the whole source program written in a high-level language, converts it into machine code in one pass of work and reports all the errors it finds together, after which the compiled program runs quickly without the translator being present. Option A is wrong because an interpreter translates and executes one statement at a time, stopping at the first error, which makes it slower to run but easier to debug. Option B is wrong because an assembler translates assembly language, a low-level language, into machine code, not a high-level language. Option C is wrong because a loader does no translation at all; it places an already translated program into main memory so that the processor can run it. All four are counted as system software.
Software permanently stored in a read-only memory chip, such as the BIOS of a computer, is called:
- A.Middleware
- B.Freeware
- C.Firmware
- D.Shareware
Show answer
Explanation
The correct answer is C, firmware. Firmware is program code written into a read-only or flash memory chip on a device, so it stays with the hardware even when the power is off; the BIOS or UEFI on a motherboard, which starts the machine and hands control to the operating system, is the example papers name, and the control programs inside a washing machine, a router or a camera are the same idea. Option A is wrong because middleware is software that sits between an application and a database or network to pass messages between them. Option B is wrong because freeware is a licence category, software given free of cost with closed source. Option D is wrong because shareware is also a licence category, free only for a trial. Firmware answers a how it is stored question, not a what it costs question.
Frequently Asked Questions
What is the difference between freeware and open source software?
Freeware is free of cost but its source code is closed, so it may only be used, not studied, changed or redistributed in an altered form. Open source software publishes its source code under a licence that allows anyone to read it, modify it and pass it on; the price is not the test, the source code is.
Is utility software a part of system software or application software?
Utility software is counted under system software. It does the housekeeping that keeps the machine working, such as antivirus scanning, disk defragmentation, disk cleanup, file compression and backup, rather than producing the user's own documents as application software does.
What is shareware?
Shareware is software distributed on a try before you buy basis. It is free for a trial period or offered in a version with features locked, and the user must pay or register to continue using it in full. WinZip and WinRAR are the usual examples, and the source code stays closed.
What does copyleft mean in the GNU General Public License?
Copyleft is the condition that anyone who distributes a modified version of the program must also distribute its source code under the same licence, so the freedom to study and change the code cannot be removed downstream. It separates the GPL from permissive licences such as MIT, BSD and Apache.
Who developed BOSS and what is it based on?
BOSS, short for Bharat Operating System Solutions, was developed by the Centre for Development of Advanced Computing (C-DAC) under the Ministry of Electronics and Information Technology. It is built on the Debian GNU/Linux distribution and comes in versions for schools, desktops and servers, with support for Indian languages.
Sources
- Policy on Adoption of Open Source Software for Government of India — Ministry of Electronics and Information Technology, Government of India
- BOSS: Bharat Operating System Solutions, releases and documentation — Centre for Development of Advanced Computing (C-DAC)
- Computer Science, Class XI, Chapter on computer systems and software — NCERT





