Computer takes input, processes it, and provides output. It works using binary digits 0 and 1 to represent high and low voltage levels. Hardware refers to the physical parts of a computer like the central processing unit, memory, storage, and input/output devices. The operating system acts as an interface between the user and hardware, managing resources and running programs. Files store saved work and support programs in various formats identified by file extensions like .exe for executable files. When a program runs, the operating system loads its executable file from storage into random access memory where the CPU fetches and executes instructions one by one until the program ends and its memory is released.