A LAN can be as simple as two PCs hooked together in the same room, or as complex as hundreds of PCs from many different buildings connected together. A LAN allows you to share application software, data or files, printers, and to send email.

Most LANs have a network server which is a PC that is solely dedicated to "serving" all other PCs on the network. This PC contains the network software, the application software, and data that can be shared with all other PCs on the LAN. This PC is usually unavailable for "normal" use. That is, no one uses this PC to perform daily computing tasks.

A network workstation is any other PC that is connected to the LAN. These are the PCs that are on everyone's desks and are used for daily work.

LANs can provide various levels of security by restricting a user's access to specific areas of the network. You can store sensitive information on the LAN while only allowing specific users the ability to view and use the information.