For the record, daring to stray outside Unix, ITS originally had a
"system job", and later split off a "core job". Both running in
monitor
mode. Job means the same thing as process here, and monitor same as
kernel.
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In ITS terminology, "demon" means a (user space) process that is started
on demand by the system. This could be due to an external event (say, a
network connection), or another process indicating a need for a service.
The demon may go away right after it has done its job, or linger around
for a while.
There's a separate term "dragon" which means a continuously running
background process.