A standalone product is as the label describes. It is a product that is individual with no other options specific to it. That does not mean that it does not need attributes assigned to it but that there are no other variations to the product.
A Parent Product is specific to creating a product family. A Parent Product is the key aspect of the product that are then used by all child products to create differentiation.
In the Manage Products screen, the user can see the difference between a Standalone vs a Parent Product. A Standalone product does not have an arrow to the left of the image on the listing.
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