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What does "Take Ownership" on drop-down menus for folders / documents / etc mean?

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Assuming that by "drop-down" you mean the Context Menu (right-click), then that option being there is not standard to Windows.

It can be added via registry edits -- see here and here for example.

A nice, concise blurb from Microsoft about what file ownership is can be found in Take Ownership of a File or Folder:

The owner of the object controls how permissions are set on the object and to whom permissions are granted.

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It's not a built-in feature. Seems like someone manually installed it on your Windows from, for example, here: Windows 7 - Take Ownership Shortcut

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