They are talking about what directories the system will look through for your executable program.
The trick here is to find out what your 'path' is. The command is 'echo $PATH' enter the command without quotes in a terminal.
Here is what my system returns.
So, if the executable is in /usr/local/bin or /usr/bin or /usr/games and the list goes on, the command will be found. If it is not in one of these directories, I can either update the path, or put a symlink in the path to the executable.
Hope this helps.