A LAN, or Local Area Network, is a group of computers, printers or other hardware that are all connected in a reasonably small geographic location like a office or home. A LAN makes it possible for the connected users to share files and applications that usually reside on a server or some type of shared computer.
LANs were invented to let people and computers share information. A server can have an application or database that is accessed by all the other computers on the LAN. This allows users to share information quickly and easily.
Ease of communication is paramount in a business environment, and LANs achieve this as well as permitting resource sharing.