What is the definition of a layer file in ArcGIS?

A layer file in ArcGIS is defined as a file that contains the symbology, properties, and display settings for a specific layer of spatial data. This means that when you create a layer file, it saves not only how the data should be visually represented on the map—such as colors, symbols, and labels—but also additional properties like the coordinate system and the data source.

The significance of a layer file allows users to easily share their visualised data presentation without needing to share the entire dataset, promoting efficient collaboration and consistency across projects. Users can apply the same styling and settings to different datasets by simply pointing to a new dataset while preserving the layer's symbology and properties.

In contrast, options refer to other concepts in ArcGIS that do not encapsulate the same functionality. For example, licensing information pertains to software usage, geographical data backup involves data storage for recovery purposes, and a user guide describes how to configure layers rather than serving as a functional representation of the data itself. Thus, the definition that focuses on symbology and properties accurately captures the essence and utility of a layer file in ArcGIS.