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Topology could refer to two terms that should not be confused. It could refer to logical topolgy wich refers to the method used to pass information between workstations. Physical topology refers to the configuration of cables, computers, and other peripherals.
Linear bus, star, and tree are the four principals topologies. These topologies can be mixed.
Topologies has significant effect on network's performance and growth potential. They impact such decisions as the type of equipment to purchase and the best approach to network management.