#1 yes, yes it does. (depending on what PDF setting you are using)
#2 us old schoolers will tell you back in the Quark days you didn't have an option, you HAD to make it the correct color, so sticking with my roots, I say make it in the correct color profile in Photoshop beforehand. Some of the RGB>CMYK conversions are awful and you may need a bump in contrast or saturation or curves so its important to do all that in photoshop first. Converting straight to PDF you don't know what you will get with your colors.
‘Our great industrial nation is controlled by its system of credit. Our system of credit is privately controlled. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of small groups of men.’ - Woodrow Wilson