Riviera Rainbow is indeed a tall grower.
1. A small saw or sharp knife. Sterilizing between cuts is a good idea when cutting ANY plant.
2. No need
3. Yes and Yes
4. Yes, the base will sprout new branches from the old leaf scars. I never put anything over the cut ends, but you can use wax or a piece of cling film.
5. Outside, in the shade, is best.
Good luck!