Some rule or regulation in some book somewhere. You'd have to find a Signalman, or whatever they call them now, to ask about that. There are flags and signals (more than one flag can be used at once) for all sorts of stuff.
Pretty sure the red/white pennant above it is "Code/Answer," so that means that they definitely have a pilot on board. Without that, you can use them in combination with other flags and pennants to show different messages.
So like this: https://upload.wikimedia.org/wikipedia/commons/5/5e/USS_Monterey_Evacuation_from_Hurricane_Isabel.jpg
Thats Code+Hotel again, so Pilot on board, then N+R+A+R on the other side, which is their call sign.
Thats the Hotel signal flag.
No, they said founder. In this case it means to fail. Among other meanings, a ship can also founder (sink), just in case you see it in that context.
No, that's the correct word.
I subscribe to the "quantity is a quality all it's own" theory and roll with 9mm JHP in a CZ Scorpion 8" "pistol" with folding brace and 35 round mags for work around the house.
Also it looks cool and is fun to shoot, so, you know, bonus.
Nice. Haven't played that one in a while due to sucking at it.
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Edit: Scratch that, it's there, just hard to see. Here's a different angle. Look right next to the aft upper radar: https://media.gettyimages.com/photos/monterey-a-ticonderogaclass-guidedmissile-cruiser-in-the-united-navy-picture-id1231808338?s=2048x2048