Typical home setup for the Internet Inquiry

Greetings,

I'm very new to IT and have a question regarding router/modems. From my understanding, a small business might have a large router that uses switches to create access points/ethernet connections. For my home network, at least for me, I have a modem that connects to my personal router. Does this cheap, personal router work the same way as one would be a business, just on a smaller scale? In other words, do cheap, personal routers you might get at Best Buy or something utilize switches or hubs? It seems a lot of these devices are merging into one another, which is causing me confusion.

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