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In this video tutorial, the speaker transitions from discussing text to focusing on paragraphs in Word 2021, explaining various formatting options. A paragraph is defined as any text segment where the Enter key is pressed. The speaker uses a Wikipedia copy-pasted document to illustrate how paragraphs may be improperly formatted. To create a new paragraph, the speaker demonstrates by positioning the cursor and pressing Enter, which Word then recognizes as a new paragraph. Additionally, the tutorial notes that even titles are considered paragraphs, although this is generally not the norm. The session aims to familiarize viewers with options for organizing their text into properly formatted paragraphs.