I don't know for sure, but I don't think the number of functions has any impact on the script's performance. What the functions do does matter a lot more, e.g. do they have to do long loops, that would delay execution? Edit: On the other hand: If I understood correctly how the script threading works it should not be a problem, so long the functions don't access shared variables you cann call a function while another is still executing, the game will simply start another thread of the script to execute the function (not sure if this is true though).
If so can I build my functions in an object script that is not placed in the world in Skyrim?
It depends. If the script only provides functionality and does neither have to store values nor has to have access to any properties you could also use a script that is not attached to anything and invoke it's global functions either by importing it into the calling script or by calling scriptname.function().
If the script needs to store values or have acces to properties you'd need to attach it to an object. In order to call the functions you need a reference to an instance of that object (otherwise the script is not loaded, and more importantly values wouldn't be saved), so you need need to place it in the gameworld.