FAT12 has the problem that with a 64k cluster size would support (2^12)*65,536 = 268,435,456 bytes (256mb). So MicrosoftCorporation introduced FAT16 which used 16 bit values for the FAT table. This allowed it to address up to about 4g disks. FAT16 had a few other minor improvements, like expanded information in the boot block about the disk.
4 pages link to FAT16:
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