Character formatting is concerned with the appearance, size, and color of the actual characters in a word or paragraph. Character formatting only applies to the characters you select. Paragraph formatting is concerned with the appearance and placement of paragraphs in a document. Some properties, such as alignment, apply to entire paragraphs regardless of how many words or characters you select. These items are not directly tied to the text flow, and therefore do not move with the text.
Text wraps around the items as specified.
This ends the current paragraph and begins a new one. An in-line item is treated like one, big character in the document. As such, the item moves and behaves a little like a single character. A line feed merely breaks the line and does not begin a new paragraph. To read more about different word processing topics, select the topic from the menu to the left.