For your #1 question: Depends on how you're searching for 'ball'. If there's no index on the column(s) where you're searching, then the entire table has to be read. If there is an index, then...
WHERE field LIKE 'ball%'
will use an index
WHERE field LIKE '%ball%'
will NOT use an index
For your #2, think of it this way: Doing SELECT * FROM table
and then perusing the results in your application is exactly the same as going to the local super walmart, loading the store's complete inventory into your car, driving it home, picking through every box/package, and throwing out everything except the pack of gum from the impulse buy rack by the front till that you'd wanted in the first place. The whole point of a database is to make it easy to search for data and filter by any kind of clause you could think of. By slurping everything across to your application and doing the filtering there, you've reduced that shiny database to a very expensive disk interface, and would probably be better off storing things in flat files. That's why there's WHERE clauses. "SELECT something FROM store WHERE type=pack_of_gum" gets you just the gum, and doesn't force you to truck home a few thousand bottles of shampoo and bags of kitty litter.
For your #3, yes. If you have an ORDER BY clause in a LIMIT query, the result set has to be sorted before the database can figure out what those 5 records should be. While it's not quite as bad as actually transferring the entire record set to your app and only picking out the first five records, it still involves a bit more work than just retrieving the first 5 records that match your WHERE clause.