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Concept of Absolute Path and Relative Path In QTP

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There is a concept in QTP, called Absolute path and relative path.
I am trying to explain the both in a simple format with a simple example
Absolute path: It means we need to mention the full path in the script itself
Executefile "D:\project\lib\abc.vbs"

or whereever necessary, we need to give the full path in the script itself
Example-D:\project\lib\ etc
Relative path: As the name refers, it is a relative scructure of the path. The path is hidden inside the script or the tool . Even the structure might hidden or created inside the coding
In the script it is written
Executefile "abc.vbs"
For this the path is mentioned inside the tool.
Tools--->option--->folder tab
The scructure which can be created dynamically is an example of true Relative path...
project path=driver&"\" & "Project"
lib path= project path & "\" & "lib"
This is an example of data hiding too.
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