(a) Since ∣y∣≥0 no matter what y is, we see Cx≥0 for all x in the domain of f(x). Since C is positive, that means the domain of f(x) only includes nonnegative numbers. So, the largest possible domain of f(x) is [0,∞).
(b) None exists.
The graph of Cx is given below for some positive constant C, also with the graph of −Cx. If y=f(x) were sometimes the top function, and other times the bottom function, then there would be a jump discontinuity where it switched. Then the derivative of f(x) would not exist, violating the second property.

A tiny technical note is that it's possible that f(x)=Cx when x=0 and f(x)=−Cx when x>0 (or vice-versa). This would not introduce a jump discontinuity, but it also does not satisfy that f(x)>0 for some values of x.
Remark: in several instances below, solving a differential equation will lead us to conclude something like ∣y∣=g(x). In these cases, we choose either y=g(x), or y=−g(x), but not y=±g(x) (which is not a function) or that y is sometimes g(x), and other times −g(x). The reasoning above somewhat explains this choice: if y were sometimes positive and sometimes negative, then dxdy would not exist at the values of x where the sign of y switches, unless that switch occurrs at a root of g(x). Since that's a pretty specific occurrence, we usually feel safe ignoring it to avoid getting bogged down in technical details.