Yes, and military-service is compulsory for male citizens. As a consequence the "active" stock of soldiers is one of the highest among European countries.
Definitely not. Switzerland has conscription and a Militia army. After a Swiss citizen has done his initial term in the Army, he returns every year for re-training. He is given his army uniform, gun and a small amount of ammunition which he keeps at home in case the country is invaded and he does not have time to get to the army barracks. The gun and ammunition remain army property and must not be used except if ordered to. Israel operates a similar system.
Switzerland has not been at war with another nation since 1815. Until 1515, Switzerland led an expansionist policy noted by many successful invasions of foreign nations. In 1515 Switzerland was defeated at the Battle of Marignano by the French army. This ended Switzerland's expansionist policy and began neutrality.
This is an impossible question to answer because there are numerous ways to qualify the best, and each army has different needs. For example, I would say Switzerland has the best army for homeland defense, and the United States has the best army for going anwhere in the world on short notice, but there are many other ways to judge how good an army is.
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