Application layer derectories are sub-directories of the virtual directory.

In IIS/web application server architecture, the application layer's directories (i.e., the folders that make up a web application's structure) are organized as sub-directories underneath the site's virtual directory, which maps a URL path to a physical location on disk. This nesting lets an application's folder structure be logically addressed via the virtual directory root. The statement is True as tested; there's no contradicting logic presented in the options.

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