How does the VMware virtualization layer handle memory in a virtualized environment?

The correct choice indicates that the VMware virtualization layer manages memory by configuring the virtual address space for each virtual machine (VM) at startup. This is fundamental to how virtualization operates, as it allows each VM to have its own isolated environment with an independent view of memory.

When a VM is powered on, the hypervisor allocates a designated amount of physical memory from the host system to that VM based on the VM's configuration. This allocation creates a virtual address space that the operating system and applications within the VM will use, ensuring they operate as if they were running on their own dedicated machine. This isolation is essential for maintaining security, performance, and operational efficiency, as each VM can operate without interference from other VMs.

In contrast, the other choices do not accurately describe the memory handling by the VMware virtualization layer. While dynamic resizing based on demand is an advanced feature that VMware can implement (such as using Memory Ballooning or Transparent Page Sharing), it is not the primary method of memory handling at VM startup. Allocating all physical memory to the host does not align with how virtualization effectively balances resources among multiple VMs. Lastly, sharing memory equally across VMs lacks the granularity and customized control that VMware provides through its memory management capabilities.