1. For strategy discussion purpose my teammate and I sit next to each other. The rules indicate that the setup must be such so that the player to your left is your opponent. What is the logic behind this? Just to make the passing of the initiative token easier (circular rather than zig-zag)?

2. Can the teammates openly look at each other's command cards and discuss (strategy) or each player keeps his/her command cards secret for everyone?

3. I understand that I can use a command card that affects friendly figures on my teammates figures. However, I cannot give something like element of surprise to my teammate while one of his figures is activating and making an attack. Correct?

4. What exactly is the rule for passing when one of the players has fewer activation cards than other players? Do we count passing as total activation of team A vs team B or player with fewest activations against the player on the opposite team with fewest activations?

5. When a player plays Take Initiative, he/she still follows the exhaust a figure rules. Correct?

1. There are no alternating activations between sides, there is a round-robin of activations. Sitting order gives you a natural record-keeping device.

Quote

During the Activation Phase, instead of play passing back
and forth between two opponents, each player in clockwise
order activates a group.

2. Depends on your group, I guess. I would allow open (not showing cards to your team-mate) discussion, if if is hearable by the opponents.

3. You can't trade cards. Strictly you can play cards that have a trait restriction box on friendly figures though, so there would be no need.

4. The pass rule is probably undefined for 4p skirmish.

5. I think how Take Initiative works (or doesn't) is mentioned in the 4p rules.

Quote

If a player would claim the initiative token out of turn, such
as by playing "Take Initiative," that player receives the first
activation on that turn, but does not claim the initiative token.
After the first activation resolves, play passes to the player with
the initiative token and then proceeds normally.
-- The player with the initiative token cannot also use effects
that would claim the initiative token.
-- If multiple players use effects that would claim the
initiative token, each of those players gain an activation
that they may use before the player with initiative resolves
his first activation. These activations are resolved in order of
initiative.
-- A player cannot use more than one effect that would allow
him to claim the initiative token in the same round.