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You can get a good idea if you install CRS.
Multi-site is ,like you have two different websites running on ATG.Now you can choose which items you want to share between these sites , which you do not want , eg : Order(shopping basket) , Promotions , Catalog etc.
in ATG CRS you will find a Garment website and Home furnishing websites running on same ATG instance.
an typical real life example can be of a website whose content may depend on country of the user , like a telecom site.