A circumscribed square is positioned outside a circle, with its sides acting as tangents to the circle, while an inscribed square is drawn within the circle, touching it at four points. The points of a square, labeled A, B, C, and D, are arranged in order around the perimeter, with C being diagonally opposite A. The distinction between the two types of squares is crucial for understanding their geometric properties. The discussion highlights the importance of accurately visualizing these shapes in relation to a circle. Understanding these definitions is essential for geometry-related tasks.