Shortcuts

A shortcut has a name and icon just like a file and folder, and can exist anywhere a file or folder can.

The content of a shortcut is a link to another file or folder.

Most icons on the desktop and start menu are shortcuts. 

Their icons usually have a small shortcut arrow symbol attached to distinguish shortcut icons from normal file icons.

Double clicking a shortcut (or right click and open) launches it.  You can right click on shortcuts to launch/cut/copy/paste/delete/edit them, just like files.