Creating nested teams in Visual Studio ALM

I just got a question on Teams without areas using Team Field in TFS and I decided that it warranted a bigger answer. The question was around creating nested teams and how to achieve it. Now, this applies to both Visual Studio Online and Team Foundation Server if you are using area path, and only TFS if you are using Team Field.
TFS for cross team and cross business line work item tracking

I was asked by current customer to come up with a solution, within TFS, to allow an entire division to work together in delivering software for a bank. This divisions made up of over 10 teams than work on many pieces of software. Some have simple requirements while others require harsh security and compliance. This […]
Issue [ TFS 2013 ] Value cannot be null. Parameter name: key
When customising your process template work item tracking gives you an “ArgumentNullException: value cannot be null. Parameter name key” exception with no more details.
Configure Test Plans for web access in TFS 2012.2
Configure Test Plans for web access in TFS 2012.2 is a little tricky and we need to be very specific on how we configure it so that our Team can see the right test Plans.
Teams without areas using a team field in TFS

Did you know that you can use Teams without areas using a team field in Team Foundation Server 2012 or 2013? There are numerous reasons to do this but the decision should not be taken lightly.