cholling, there are plenty of organizational use cases for creating sections within a course that relate to how a school/college/institution enrolls students and limits those enrollments--but specifically with respect to differentiated assignments and sections, creating sections is a great way to assign different due dates and times for the same assignment to large numbers of students at the same time--for example, if a teacher teaches the same course over multiple periods in a day. It becomes easier to create a section and place all of those students within a section than it is to, say, individually select 25 students, and then again, and again, and so forth.
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