A further question is if I limit my area to say my state if it was in the US would the word flowers include flowers statename or statename flowers?
It didn't look like anyone else answered this part so I'll jump in. If you target a specific state with the keyword "flowers" (and you're using anything other than exact match), Adwords default campaign settings will target people within that state that search for your keyword, as well as people around the world that search for that state with the keyword. For example, if your targeted location is California, if people in New Jersey search for "California flowers", they may see your ad. This option is in the campaign settings under location options (advanced)> Target. The default is "People in, searching for, or viewing pages about my targeted location (recommended)", but you can change it to "People in my targeted location" or "People searching for or viewing pages about my targeted location". Here's the Google help article talking more about these options.
