What is the difference between the words network, work group and domain?
Workgroups compared with domains
A domain is a group of accounts and network resources that share a common directory database and set of security policies, and might have security relationships with other domains. A workgroup is a more basic grouping, intended only to help users find objects such as printers and shared folders within that group. Domains are the recommended choice for all networks except very small ones with few users.
In a workgroup, users might have to remember multiple passwords, one for each network resource. (In addition, different users can use different passwords for each resource.) In a domain, passwords and permissions are simpler to keep track of, because a domain has a single, centralized database of user accounts, permissions, and other network details. The information in this database is replicated automatically among domain controllers. You determine which servers are domain controllers and which are simply members of the domain. You can determine these roles not only during Setup but afterward.
Domains, and the Active Directory directory system of which they are a part, provide many options for making resources easily available to users while maintaining good monitoring and security. For more information, see Active Directory.
This implies that the AD system will have it's own DNS server and a domain.name
(frequently registered with a centeral registrar; google registering a domain name) as well as an LDAP server( which is the Active Directory service).
The home user setting up a few systems for mom, pop & the kids doesn't need the AD as it is an over-kill.
That said, It is doable for those bold and inquiring minds that just have to know