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Yes I'm pretty sure Paypal would use the money from her mother to close the gap and no, unless she has another bank account she will not be able to withdraw any money from the new Paypal account as you can't register a bank account twice.
Yeah you can't have the same bank account or credit card attached to multiple paypal accounts.
You can add a bank account to one PayPal account at a time. However, if approved, you may be able to add the bank to a second PayPal account. You will be informed when linking the bank to the second PayPal account if you have been approved.
Yes. You can have one Consumer account and one Business account. You can add more email addresses, debit or credit cards, and bank accounts to your account, but each account must have its own email address and financial information. You can also upgrade your Consumer account to a Business account.
Here is some info from Paypal.com's FAQ: https://www.paypal.com/us/selfhelp/article/Can-one-bank-account-be-used-on-two-different-PayPal-accounts-FAQ1838Can one bank account be used on two different PayPal accounts?Quote You can add a bank account to one PayPal account at a time. However, if approved, you may be able to add the bank to a second PayPal account. You will be informed when linking the bank to the second PayPal account if you have been approved.And paypal on multiple accounts: https://www.paypal.com/us/selfhelp/article/Can-I-have-multiple-PayPal-accounts-FAQ762Can I have multiple PayPal accounts?Quote Yes. You can have one Consumer account and one Business account. You can add more email addresses, debit or credit cards, and bank accounts to your account, but each account must have its own email address and financial information. You can also upgrade your Consumer account to a Business account.