A. Yes, people can purchase external billing products without being a member.
It creates a contact for the record of the client and the sale is attached to the contact.
A. This is an option that appears when 1-UP or 2-UP is turned on. This feature allows an Member to specify if a person in their downline must qualify (and passup their first sponsor, etc. as required by the #-UP). If it is set so they are not required to qualify, then that Member keeps every person they refer and doesn't have to pass any referrals up to their sponsor.