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The privilege level at which the program runs is one difference:

  1. operating system software runs with systemprivileges, this allows direct access to all system resources including memory management, I/O, interrupts, clocks and timers, etc.
  2. application software runs with userprivileges, this restricts access to system resources to only those requests made through the operating system preventing conflicts

There are many other differences.

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Q: What is the difference between operating system and Application Programme?
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