To get a Master Ball in Pokemon Crystal you have to defeat all the gym leaders then talk to professor elm. I advise you to keep the master ball for luigia.
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Using a master ball
Attach your master ball to ONE POKEMON, next CLONE that Pokemon for how many master balls you want. Next detach them, and release all the clones (if you want)
Yes, if you have a Pokemon hold a Master Ball and then trade the Pokemon, you will have transfered the Master Ball.
no it won't be holding a master ball cos when you used the master ball to catch a certain Pokemon, the master ball will be gone in your inventory because it is a consumable.
No.