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GROUP BY clause

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If aggregate functions are used in the select clause along with attribute list we must use group by clause for grouping the attribute values ?

SELECT a1, COUNT(*) FROM Employee

Is above query  right or  wrong ?
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How does group by works. ya it make groups of the data . and what i know it will group the data. what what i found on running on the online tutorials is that , the group by only shows me one entry for every distinct entry, can someone plz explain the way this group by works??
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