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The main difference between workgroups and domains is how resources on the network are managed. Computers on home networks are usually part of a workgroup, and computers on workplace networks are usually part of a domain.
In a workgroup:
In a domain:
A workgroup is a basic network infrastructure with slack security control and there is basically no central controlling administrative center. A workgroup is more synonymous with small networks - one where it does not warrant to have a domain network installed. With a workgroup no other extra computers are required and by far the cheapest setup for a local in-house network. A domain on the other hand is more complicated and suitable for large businesses with many computers and departments within departments like a university structure or the structure within the Microsoft Corporation. Domains have extra computers to oversee the normal functioning of the corporate computers and security and sharing of data is high on the agenda.