Difference between domain and organizational unit in active directory

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I know OU is a part of a domain. My question is what are the key feature or funtionality difference between a domain and a OU. what are the things OU can't do and domain can (not like creating each other).

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OU's are like containers if you like for the domain. So you can have a logical view of computers, users, servers, security groups etc. Also having OU's makes applying GPO's more structured also. I suppose imagine a domain as a city and the OU's are the towns in the city, and you can even then have OU's nested in OU's and suppose you could look at them as the streets within the town. Hope that answered your question.