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A component is a unit of reusable code. Components reduce our application development time and they assemble our application source files into one executable unit. Assemblies are building blocks of a .net application. Components are packaged in assemblies. They can exist in the form of DLL’s or exe’s. The basic difference between a .dll file and .exe file is that a .dll file cannot execute independently. They can only include in our application and reuse the functionalities provided in it. An exe file can execute independently. Another difference is that an exe file have an entry point. That is they can have a main method. A dll file does not have an entry point. They can contain classes, interfaces etc.