BIOS, or boot firmware, is essential startup code for PCs that initializes hardware components like the video card and hard drives when powered on. It performs a Power-On Self Test (POST) to verify system functionality and allows users to configure system settings through a setup program stored in nonvolatile RAM. Different types of BIOS include AMIBIOS, AwardBIOS, and FlashBIOS, with common manufacturers being American Megatrends and Phoenix Technologies.