1. This is at the control of your school's network operating system and how its security and file permissions are set up . It also relies on the file staying there. Once you give someone a copy of the file, you have lost all control over it.
2. No. If they can open the file, they can save it, copy it or copy its content to another document. Indeed, even if you give them read-only access via network security, that doesn't prevent the content being copied.

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]