What is the difference between passive and active speakers?

Passive loudspeaker - the low-level audio signal is first amplified by an external power amplifier before reaching the speaker cabinet. Inside the cabinet, the signal is divided into frequency bands appropriate for each driver using a set of components, known as a passive crossover. This is the most common design in home audio and allows compatibility with a wide range of amplifiers.
Active loudspeaker - each driver has its own dedicated power amplifier, which may be housed either inside or outside the speaker cabinet. The low-level audio signal is first routed through an active (powered) crossover or DSP processor, which splits the full band frequency into the appropriate frequency ranges before sending it to the individual amplifiers and then to the corresponding drivers. All QUESTED's large format system is typically active speaker design.