Type 1: Questions

-- What are small capitals? How are they different than something set in ALL CAPS?
"Small caps are uppercase letterforms that are shorter in height than the capitals in a given typeface. When designed as part of a text face, they are most often the height of the lowercase (or very slightly taller), so that they harmonize with both the caps and the lowercase characters. Small caps that are designed for display typefaces have more flexibility in their proportions, and are often taller than the x-height." It makes a line of uppercase letters less jarring. Setting in all caps is larger. 

-- Does your font have small caps? If not name a font that does.
My font, Bembo, can be put into small caps, but Georgia Pro has been designed with small caps. 

-- Ligatures? why are they used? when are they not used? what are common ligatures?
"a ligature occurs where two or more graphemes or letters are joined as a single glyph." They are used when two characters share common elements or overlap and can be combined. They are not used between characters all the time. Common ligatures are "fi" and the ampersand "&" a combinated evolved of "e" and "t". 

-- Does your font have ligatures? If not name a font that does.
Bembo does have ligatures.

-- Difference between a foot mark and an apostrophe? Difference between an inch mark and a quote mark (smart quote)?
Feet and inch marks are for describing feet and inches, " ', apostrophes are for possessives, plurals and quotations.

-- Hyphen, en dash and em dashes, what are the differences and when are they used.
A  hyphen "Indicates breaks within words that wrap at the end of a line. Connects compounded words like “mass-produced”. (Closed compound words like counterintuitive have no hyphen in modern English, except for uncommon combinations that are confusing or ambiguous without a hyphen. Connects grouped numbers, like a phone number 555-860-5086 (but not used for a range of numbers, like a date range)."
An en dash "Joins numbers in a range, such as “1993–99” or “1200–1400 B.C.” or “pages 32–37” or open-ended ranges, like “1934–”. Joins words that describe a range, like “July–October 2010”"
Em dash is for "Works better than commas to set-apart a unique idea from the main clause of a sentence. Separates an inserted thought or clause from the main clause... Shows when dialogue has been interrupted”".



http://www.fonts.com/content/learning/fontology/level-1/type-anatomy/small-caps
http://en.wikipedia.org/wiki/Typographic_ligature
http://www.punctuationmatters.com/the-hyphen-dash-n-dash-and-m-dash/