How does point of view affect a story?

Answer 1

Each person in a story has their own thinking, and each person will tell the story from a different view, in fact, it often will be the same event, but a different story. Consider Christmas morning, what would be the differences in the story if Santa told it, versus the child receiving the presents.

Answer 2

In a story written in the first person, the reader knows what the narrator is thinking, but does not know what the others are thinking or feeling.

In a story written in the limited third person, the reader only knows what one character is thinking and feeling. However, in the omniscient third person, the reader is told what many characters are thinking and feeling.