A content type represents a group of informational items in your organization that share common properties. You can define these properties, which include name, description, a grouping category, to meet your business needs. Also, you can adjust the properties associated with templates, workflow, site columns, and policy management as well as the settings for the document information panel. You can change these properties at any time and optionally apply those changes to your entire environment.
Some good example of Content Type are Document Metadata , Contact List , Issue List etc.
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