How do bridges divide a larger network into smaller broadcast domains?
After quite a bit of research through YouTube and whatnot, I finally managed to find the answer.

A bridge (or a switch, both being data-link layer devices) DOES NOT divide the broadcast domains of the VLAN (the virtual LAN is formed by connecting the different physical segments using the bridge/switch).

A broadcast is sent with a special MAC address FF:FF:FF:FF:FF:FF (48 bits of 1s), of which the bridge/switch has no entry in its bridge table (and for that matter, will never have). The essential point to be noted here is that a bridge/switch follows a learning approach, in which until it is absolutely sure on which of it's port (or interface) a MAC address lies, it just forwards the frame to all the ports (except the one from which the frame has arrived). Hence, the bridge/switch, having no details of the destination MAC address of the broadcast frame, will go on to forwarding the frame to all of its ports (except one, the one from which it arrived).

What this means is that a bridge/switch cannot break the broadcast domain of the VLAN it is forming.

More related information:

https://youtu.be/reXS_e3fTAk?t=335