a) The search path determines the directories that WinRunner will search for a called test.
b) To set the search path, choose Settings > General Options. The General Options dialog box opens. Click the Folders tab and choose a search path in the Search Path for Called Tests box. WinRunner searches the directories in the order in which they are listed in the box. Note that the search paths you define remain active in future testing sessions.

[Source: JAGAN MOHAN "Interview questions bible"]

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