Does Multi-Site have to be enabled for BuddPress to provide Social networking?

I've just installed the Studio theme and the BuddyPress Plugin. I'm migrating an existing membership site to this new BuddyPress/Membership(plugin) site.
I'm a little confused on installing Buddypress with or without Multi-site enabled. My understanding is that Multi-site is only for allowing members to created their own blogs. Is this correct. It might be overkill for my member base, but I don't know. Would they still get the Facebook type of experience without MU enabled?
Or I guess the more appropriated question is what is the recommended configuration to get the most out of BuddyPress?
Please advise. and Thanks!