It's a good idea to read the entire manual. The permit test will cover the entire driver's manual. To be the most prepared for the exam and to give you the best chance of passing, you want to be familiar with the entire manual.
Yes. It's a very good idea to study for your permit test as this is the best way to ensure that you will pass. Though there are quite a few questions where you can use common sense, a few questions on the exam require more advanced knowledge.