A Local Area Network (LAN) is basically a smaller network that's confined to a relatively small geographic area. LAN computers are rarely more than a mile apart. Examples of common LANs are networked computers within a lab, school, or building.
Within a LAN network, one computer is the file server. This means that it stores all software that controls the network, and it also stores the software that can be shared among computers in the network. The file server is the heart of the LAN.
The computers attached to the file server are called workstations. Workstations can be less powerful than the file server because they don't have to store as many files and applications as the file server, and they are not always on and working to keep the network up and running. However, workstations may also have additional software stored on their hard drives. Most LANS are connected using cables.