The acronym 'LAN' stands for Local Area Network, which refers to a network that connects computers and devices within a limited geographical area, such as a home, school, or office building. LANs allow users to share resources like printers, files, and internet access quickly and efficiently. They typically operate at high speeds and use wired (Ethernet) or wireless (Wi-Fi) technologies to facilitate communication between devices. Due to their limited range, LANs are ideal for enhancing connectivity within small areas, creating a networked environment for collaborating and exchanging information.