What is an exchange account

What is an exchange acount, my new Ipad is asking for an Exchange account Pasword.

Mr. Sampson, 
I don't think you understand the problem, so I will explain more clearly using way to much of my actual work time. 
I have no problem with my employer or microsoft requiring a poaasword or with my employer requiring me to change that e-mail password.  The problem occurs when the e-mail feature controls the entire iPad, and locks you out from all other functions unless you know the new password.  In the past, when I had to change the password, the only effect was that my e-mail would not download and I could not send from the iPad, but I could use the other apps.
Here is a scenario...least you think this is an imaginary problem. Say, for example, I have to change my password at work so I do, but my husband is using my iPad to score a baseball game for our son on GameChanger.  He gets the pop-up which says incorrect password for Exchange account.  He presses the "Cacncel" button, which should just allow him to use the iPad, but not update the e-mail password.  It does not.  It just keeps popping up over and over and OVER and he cannot use the iPad at all.
Although I did eventually figure out what the problem was after searching the internet for fixes.  Two things need to happen.
1.  The pop-up needs to be clearer...ie not targeted to computer programers or tech people who think it should be clear to everyone what an exchange account is. (Please refer to your respose which uses terms like "a version of an IMAP account...that's not helpful).  For example, the pop-up could say: "Did you change you outlook (or Gmail or whatever) password.  Please enter the correct password.
2.  The Cancel button in this pop-up should actually work...to clarify: you should have the option of ignoring the prompt to update your e-mail password, but still be allowed to use other features on you iPad.  Right now, if you select "Cancel" the same pop-up just keeps coming.  That sounds like a pretty bad glitch to me.
I am not sure if you work for Apple, but hopefully this clarification of the problem will prompt Apple to DO SOMETHING TO FIX THIS APPLE problem.

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