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What exactly is “Active Directory” and are the key services it provides?

Active directory is a hierarchy where the domain controller can send out group policies and is able to manipulate and maintain a multitude of computers at once

What are the differences between a domain, forest, and tree in Active Directory?

Domain is the top level of everything, forest is all the computers that the domain controller can maintain and the tree is a single computer

How can objects (e.g. users, devices) within a domain be grouped?

Objects can be grouped within a domain as long as they are within the same forest

Explain the benefits of Active Directory, as you would to a family member.

If you had a lot of computers in a company, Active Directory is able to maintain and secure all of them, all at once while also letting you login to all of them with the same username and password.

Source: What is Active Directory?

What I would like to know more about

I would love to know more about Active Domains and what they are capable of doing rather than just automating maintenance.