Yes, you CAN use it in that fashion. However, you should still technically obey the licensing requirements of all the software/data on your computers.
Time Machine is actually designed to enable you to restore all your software/data to a new hard drive in case of failure, not for copying/imaging purposes.
No, you can use the same drive. Time Machine will make a separate backup of each Mac on the drive. However, you can only connected it to one at a time.
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