What are limitations of using a sub-network setup?

Typically with personal WiFi, you have your ISP line into the home which connects to a modem, then a router (or hybrid of both). Then the router produces a network.

But now let's say you take an Ethernet cable form the first router (we'll call this network A) and connect it to a new router (we'll call this network B). Instead of extending the network, you use it to setup an entirely new WiFi network.

Setup shown here: Sub-Network Setup

So my question[s] is...

  1. Does Network B act as sort of a sub-network or is it independent as if it were getting a line directly to the ISP?
  2. For network security, do the settings of one network depend on the other? Ex) IF I want to port forward a device on Network B, would I also have to do it on Network A or would just the once be enough?
  3. Are there any inherent limitations of this setup?

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