Windows networking for small business and home business can be represented by three different models. In the first model, for instance, a small home network, the computers are physically connected to a hub/switch, however the computers are not configured for networking and thus operate independently of one another without the ability to share or use resources on the other computers
A Peer to Peer network configuration provides a second model where computers are connected through a hub/switch or router, and the computers are configured to allow networking protocols which allow sharing of resources such as files and printers. This model allows the sharing of files or folders in addition to allowing several computers to use a printer connected to another computer.
The third networking model uses dedicated servers which form a security boundary for all computers in a domain. This allows a user to sign on to the domain and be able to access resources on multiple computers in the domain through a single sign on. This is the model used by large businesses.
This is a network design that is not uncommon for home networks and is often used to provide internet connectivity for 2 or more computers without the computers having access to each others resources such as files or printers.
Peer to Peer Networking - Home and Small Business

Peer to Peer networking is suitable for small numbers of computers and/or servers which need to share resources such as files and/or printers. This type of networking involves specific computer configuration to allow computers to share resources and also to be able to find network resources on other computers. As each computer in the network has its own independent security datase, computers connecting through the network must provide credentials to gain access to files and folders. As creating and maintaining these credentials across several computers can take a fair amount of time, this type of network design is limited to no more than about 5-10 computers.
Networking with a Domain and Active Directory - Small and Large Business

The Windows Active Directory Domain model is essentially the "state of the art" in networking for small and large business. This model is suitable for small businesses who need the security and resource sharing capabilities of server based operating systems such as Windows Server 2003 or Windows 2003 Small Business Server. In this model, a certralized server is used to maintain a list of users. When logging on the user generally logs onto the domain instead of logging on to an individual computer. By logging onto the domain, the user then is able to access resources throughout the domain through a single log in. In addition, Windows Active Directory provides the ability to manage individual computers in the domain through Group Policies, thus providing consistent configuration and security configurations for computers in the domain. Small Businesses who are running Peer to Peer network designs with 5 or more computers may be better served by upgrading to a Domain network configuration.