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The term 'init' in init files stands for Initialization. Init files are crucial in the boot process of a Linux system, as they are responsible for setting up the environment and starting various system processes. During the system initialization, these files are executed to establish system settings, configure hardware, start services, and prepare the operating system for user interaction.

The significance of this term lies in its function, as "initialization" directly relates to the actions these files take to prepare the system for operation. This understanding is key when working with Linux systems, especially when troubleshooting boot issues or configuring the system for specific uses, as you will often encounter init files in various contexts within the system's startup procedure.

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