It can but you will need to change your power settings for it to work. At present the power settings on your laptop will either sleep, hibernate or shutdown your laptop when you close the lid.
Hopefully you are running 7 so this works (it can be done with other OSes but I don't know offhand how to change th epower settings on those)
Start -> Control Panel -> Power Options (Small/Large Icons)
Under "Preferred Plans" you will have a few options. Beside the active plans click "Change plan settings" -> Change advanced power settings -> Scroll down to and expand "Power buttons and lid" -> Under "Lid action" select "do nothing"