The document discusses how to identify tangent lines and find derivatives using limits. It defines the slope of a tangent line as the rate of change of a graph at a given point. To calculate slope, it uses the limit of the difference quotient as the change in x (Δx) approaches 0. This defines the derivative as the slope of the tangent line. It provides an example of finding the derivative of f(x)=x^2 at the point (2,4) using this limit process.