Why we need VLANs, an Introduction to VLAN technology
The design of layer-2 switched network is somewhat like flat network. Each and every device on the newtork can see the transmission of every broadcast packet even if it does not need to receive the data.
The Structure of Flat Network
The routers permit the broadcasting within the originating network only but it does switch forward the broadcasts in each and every compartment or segment. It is called flat network not because of its flat design but due to the reason that it has a single broadcast domain. As shown in the figure the broadcasting by Host A is forwarded to all the ports on all switches leaving the port that received it in the beginning.
In the second figure you can see a switched network sending frame with Host A and Host D as its terminal/destination. You can notice that the frame has forwarded out only the port where the Host D is situated. This is a great advancement if you compare it with old hub networks but if you want one collision domain by default then you may not like it.