By default android takes the package name as the process name. But if you define process property in application tag in manifest file android:process="com.example.newprocessname"
then the application will run with this name "com.example.newprocessname".
As for your questions,
1-> In this case your application name is same as the default package name, that's why it is working. Try changing the process name. It'll not work.
2-> That's true. It is by default. Refer to "android:process" in the following link:https://developer.android.com/guide/topics/manifest/application-element.html
Hope this answers your question!