To make a Facebook account you have to agree to the Terms of use. Many people don't even bother to read them because they know all their friends already are on Facebook, how bad could it be?
First of all, the content that is covered by intellectual property right, like photos and videos, can be used by Facebook however they want. Even after you have deleted your own content, they keep backup copies. It does not matter how high privacy settings you have on your account, Facebook owns it all and can use it or sell it to whoever they want to.
Facebook is full of ads that they believe suits you as an individual, and is beneficial for both you and the advertiser. But you are able to limit how your name and profile picture are being used, if you change your privacy settings. Facebook can collect information from the device you use to connect to Facebook, and use it to gather information about you they may come in handy later.
You can choose how much of your profile that is available to others, but your name and profile picture will usually be revealed to everyone. Some people choose to have an open profile, where anyone can see everything, even those who are not a member of Facebook. If you have a closed profile, you have to confirm friend requests before they can see your profile.
You can post everything you want on Facebook, as long as it's legal and does not hurt anyone else. You have to get permission to post pictures of others, and people can report pictures or comments if they think they are inappropriate. If you have added inappropriate content several times, you will get thrown out of Facebook.
Resources:
Facebook, April 26 2011, Statement of Rights and Responsibilities, viewed 16 August 2011, http://www.facebook.com/terms.php.
Facebook, December 22 2010, Facebook's Privacy Policy, viewed 16 August 2011, http://www.facebook.com/policy.php.
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