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A domain name is your online address. It directs visitors to your website when entered in the browser.
Yes, you can. Pick a domain that reflects your business name, such as freshcakes.com instead of nicksfreshcakes.com.
Avoid those. They tend to confuse the customer. You could instead have straightforward names like juiceforall.com and not juice4all.com.
Only slightly. It may help to include some kind of relevant keyword, but it's not critical at all.