I have used k2 to create a business directory. The listed companies can be categorized into multiple groupings. I applied k2 tags appropriate to the category then created a menu linking to each individual tag.
www.hrabastroptx.org

Here are the several questions

1. I had to manually create the directory menu. Is there an easier way to automatically generate a menu.

2. I want each page to show the tag appropriate to the menu selection in the top what is the best way to do this.

3. How do I display tags in each item (Show what categories they belong to)

1. try k2 tools module in category list mode

I made it work using cloud tag. How do I have the tag show up above the listings as a title perhaps a cusom module that includes $tag or some variant

Do you have a sample of your K2 directory?