The document describes three types of embedded systems: small scale, medium scale, and sophisticated. Small scale systems use a single microcontroller with little hardware/software complexity. Medium scale systems can use multiple microcontrollers or DSPs with more complex hardware/software. Sophisticated systems have significant hardware/software complexity and may require specialized processors. The document also discusses different types of processors used in embedded systems like microprocessors, microcontrollers, DSPs, and application-specific processors.