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“To set up” is what’s called a “phrasal verb” – or, in other words, a verb made up of two words. “To set up” is a different verb from “to set out” or “to set in”. Often, these phrasal verbs are used as nouns. For example, a ‘set-up’ is something that has been set up, a pick-up is a vehicle that can pick things up, and a line-up is the line formed when people are lined up. All the nouns are hyphenated, and the most common of them have become a single word (like setup). Many of the nouns have also come to be used as adjectives, as in a pick-up truck (or joint) or setup costs. Like the nouns, the adjectives are hyphenated or have become single words.