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What is a template?
Templates are a special type of Microsoft® Word document that can hold text, styles, macros, keyboard shortcuts, custom toolbars and AutoText entries. A document created using a template will have access to all of these features and so a large part of your development and document creation job will be done for you (assuming your templates are well thought out).
As an author you can focus on the content and not worry about the styling or layout of your work.