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In a domain, the directory resides on computers that are configured as "Domain Controllers". A Domain Controller is a server that manages all security-related aspects of a user and domain interactions, centralizing security and administration.

A domain does not refer to a single location or specific type of network configuration. The computers in a domain can share physical proximity on a small LAN or they can be located in different parts of the world. As long as they can communicate, their physical position is irrelevant.

The benefits of a domain are
# Centralized Administration - Management of the entire domain can be done with access to one database.
# Single Logon Process - Access to network resources can be granted through a single logon.
# Scalability - Very large networks can be created.

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