Multitasking in android is handled through services and background processes. When the focus of an application is lost such as pressing the home button, the application's state changes to a paused state. It's up to the developer on how the paused state is handled. Some programs will continue to progress because they are using background processes or services which don't get paused with the app. Android manages memory automatically and may terminate a program in the paused state. When a app is resumed, again it's up to the developer how it's coded.
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