Answer Posted / subbu

There are three types :
Scalar
In-line and
Multi-statement functions

Scalar UDFs return a single value. They are similar to
built-in functions such as DB_NAME(), GETDATE(), or USER_ID
(), which return a single string, date, or integer

In-line UDFs return a single row or multiple rows and can
contain a single SELECT statement. Because in-line UDFs are
limited to a single SELECT, they can't contain much logic

multi-statement UDFs can contain any number of statements
that populate the table variable to be returned. Notice
that although you can use INSERT, UPDATE, and DELETE
statements against the table variable being returned, a
function cannot modify data in permanent tables

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