Domain - A group/network of related Users/Devices

Domain Controller - A server that runs the Active Directory software which Users/Devices authenticate against

Active Directory - A Microsoft software installed on the Domain Controller that stores and manages all of the Users/Devices and their associated permissions that the Domain Controller uses for authentication

I used VMWare to set up my virtual server and user computer. I then converted the Windows Server to a Domain Controller and installed Active Directory.

I then created a hierarchy of locations, teams, and users with appropriate permissions. To simplify allocating permissions I created security groups.

I then created a virtual computer which I bound and connected to the Domain & Active Directory. I was able to successfully log into the computer and authenticate, verifying my setup.