I believe I have found what I was looking for on the VMware website.
Encapsulation
A virtual machine is essentially a software container that bundles or “encapsulates” a complete set of virtual hardware resources, as well as an operating system and all its applications, inside a software package. Encapsulation makes virtual machines incredibly portable and easy to manage. For example, you can move and copy a virtual machine from one location to another just like any other software file, or save a virtual machine on any standard data storage medium, from a pocket-sized USB flash memory card to an enterprise storage area networks (SANs).
Hardware Independence
Virtual machines are completely independent from their underlying physical hardware. For example, you can configure a virtual machine with virtual components (eg, CPU, network card, SCSI controller) that are completely different from the physical components that are present on the underlying hardware. Virtual machines on the same physical server can even run different kinds of operating systems (Windows, Linux, etc).
When coupled with the properties of encapsulation and compatibility, hardware independence gives you the freedom to move a virtual machine from one type of x86 computer to another without making any changes to the device drivers, operating system, or applications. Hardware independence also means that you can run a heterogeneous mixture of operating systems and applications on a single physical computer.