There's plenty of flexibility when it comes to how you manage the domain names within your web hosting account, here are the otions that you have and the differences between them:
Parked Domain
A parked domain is simply a new domain name that points to the same place as your primary domain name. You would use parked domains if you wanted two domain names to show the exact same content, ideal for website branding purposes.
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Addon Domain
An addon domain is a completely separate website hosted under the same account, of our web hosting plans Host-2 and up support this feature as do all our reseller plans. The files will be found in their own folder inside the "public_html" directory. Use would choose to use an addon-domain if you want a second website with it's own individual content, but don't want a separate web hosting account. This is perfect if you manage a small number of sites for yourself as you only get the one cPanel login to manage it all.
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Subdomain
A subdomain is a prefix added onto your original domain (subdomain.yourdomain.com). The content shown here is found in a folder under your "public_html" directory. Uses for this include a forum that you want to access by using 'forum.yourdomain.com' to help keep your website structure organised.