This parameter represents the name to be used when creating the application server Group Policy Object in the specified domain ...

This parameter represents the name to be used when creating the application server Group Policy Object in the specified domain or represents the domain in which an app server Group Policy Object with the default name should be created. Group Policy Object is specified in the format DOMAIN\GPO_NAME. Domain is specified in the format DOMAIN. If the parameter contains only the domain name then the following default Group Policy object name is used:  application server policy for . 
A list of Group Policy Objects can be specified