Which of the following BEST describes how a layer 2 switch functions?

Layer 2 switches operate at the Data Link layer of the OSI model and build a MAC address table by learning source addresses on each port. When a frame arrives, the switch looks up the destination MAC in its table and forwards the frame only to the appropriate port, keeping traffic within the same broadcast domain and subnet.

Routing packets between different subnets based on IP addresses is the function of a Layer 3 router or a Layer 3 switch, not a Layer 2 switch.

A Layer 2 switch does not route between different subnets at all - it only forwards within the same subnet, and it uses MAC addresses, not IP addresses.

Layer 2 switches do not use IP addresses for forwarding decisions - IP-based forwarding is a Layer 3 function performed by routers.