One of the great aspects of Dataverse is that it provides us with the ability to create a strong relational database schema where we can implement lookups and many to many (N:N) relationships between tables. When it comes to how we interact with the Dataverse, our UI needs something here for us to be able to see the data related to certain records where there are those kind of relationships in place on the tables the records are sitting in.
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https://www.lowcodelewis.com/blog/managing-related-records-in-dynamics-and-dataverse
Table relationships define how rows can be related to each other in the database. At the simplest level, adding a lookup column to a table creates a new 1:N (one-to-many) relationship between the two tables and lets you put that lookup column in a form.
https://learn.microsoft.com/en-us/power-apps/maker/data-platform/create-edit-entity-relationships
Microsoft Dataverse is a cloud storage platform that lets you securely store and manage data used by your business applications.
https://learn.microsoft.com/en-us/microsoftsearch/manage-dynamics365