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PC makers pay a license fee to Microsoft to install Office Starter on new PCs. (It’s not available to ordinary retail customers.) You can use the Starter Edition with no restrictions or upgrade by purchasing a product key and activating the full version.
The collection of programs in Office Starter is Spartan, to say the least. You get Word Starter and Excel Starter, with a few extra tools. The PC maker is required to warn you that the Starter programs have “reduced functionality” and also include advertising.
Backstage view (which appears when you click File) has all the information and control over settings that you’ll find in the full Office editions, including yet another opportunity to purchase one of the full versions. Note the limitations are described much more kindly here than in the required disclosures from OEMs.