A potentiometer is a variable tapped resistor that can be used as a voltage divider. The same term is applied both to an electrical component and to a measuring instrument. As an electrical component, a potentiometer is a three-terminal resistor with a sliding contact that forms an adjustable voltage divider . If all three terminals are used, it can act as a variable voltage divider. If only two terminals are used (one side and the wiper), it acts as a variable resistor or rheostat. Potentiome… (More on Potentiometer)