OS Cloning doubts!

I've never did a cloning.. What exactly cloning does? If it makes a complete new copy, then a group of person needs only one copy of OS purchased and cloned for the rest of them. This might be wrong.. So, how cloning works?
 
Solution
When you "clone" or create an exact copy of a hard drive on another hard drive, that newly cloned drive cannot be used on a different computer, it's illegal to do so, plus the cloned Windows would not run properly on different hardware (if it ran at all).

The cloning process is used either to create an identical drive and keep it as a backup. or to upgrade the hard drive on that computer without having to re-install Windows from scratch.
When you "clone" or create an exact copy of a hard drive on another hard drive, that newly cloned drive cannot be used on a different computer, it's illegal to do so, plus the cloned Windows would not run properly on different hardware (if it ran at all).

The cloning process is used either to create an identical drive and keep it as a backup. or to upgrade the hard drive on that computer without having to re-install Windows from scratch.
 
Solution