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A paragraph in Word may be different to the standard grammatical understanding of a paragraph.
Websters classifies a paragraph as:
any section or subdivision of a writing or chapter which relates to a particular point, whether consisting of one or many sentences.
Word considers a paragraph to be anything up to the point where you press the Return key. This means that while a single sentence or group of sentences may still be a paragraph, so could a single character.
For example, while the two sentences above this one would be recognised as a paragraph by both Websters and Word, Word would also consider the next character to be a character:
To summarise this, Word considers anything up to the point where you press Return to be a paragraph, whether it's a single character or a million pages.