Limiting users' abilities to work with the shared files. For example, users may be allowed to read documents but not to make changes to them. Be sure you want to do this. Clicking this checkbox gives the item the same access privileges as the folder that contains it. But it will prevent others from making changes.
File privileges can be misunderstood.
The privileges labeled Make Changes let people see, open, copy, add, delete and change the items inside the shared folder.