What does VLAN stand for in network terminology?

VLAN stands for Virtual Local Area Network. This term is used in networking to describe a logically segmented network within a physical network. VLANs enable you to create distinct broadcast domains, allowing devices to communicate as if they are on the same physical network, regardless of their actual geographic locations.

By using VLANs, organizations can improve network performance and security by segmenting traffic. For instance, different departments can be on separate VLANs, which enhances security by isolating sensitive information within particular groups and minimizing unnecessary traffic on the network.

This concept is crucial in modern network design as it allows for more efficient use of physical network infrastructure and better control over network policies. The other options do not correctly define the established term and thus do not capture the intended meaning of VLAN in networking.