Local Area Network:
By definition, a local area network (LAN) is limited to a specific area, usually an office, and cannot extend beyond the boundaries of a single building. The first LANs were limited to a range (from a central point to the most distant computer) of 185 meters (about 600 feet) and no more than 30 computers. Today’s technology allows a larger LAN, but practical administration limitations require dividing it into small, logical areas called workgroups. A workgroup is a collection of individuals (a sales department, for example) who share the same files and databases over the LAN. Figure 1.1 shows an example of a small LAN and its workgroups.
Example:
FIGURE 1 . 1 A small LAN