In the Define Favorite Tools window, in the right-hand column beneath the Programs browser are the options for Start Folder and Parameters.
The Help file gives a list of the settings, but I can't get my head around what they actually do.

Could someone please expain
What these do and how they work?
When and why would they be used?
Could you provide a couple of "real-world" examples?
I look forward to any input, thanks.