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1) I more or less know the meaning of "for the taking" but I am highly confused about the usage of this phrase. When should one use this phrase, in what situation one should use it.

2) My second question is, which of the following sentence of correct

I am highly confused about the usage of this phrase

Or

I am highly confused on the usage of this phrase

  • As an aside, I think very confused would read better than highly confused. – J.R. May 1 '16 at 10:35
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Let's get the easier question out of the way first. When you are confused, you can use about or on, but I think about is the "safer" choice. Behold the ngram.

As for for the taking, let's say that you need a job, and I own a business. I might tell you:

I have a job opening. It's yours for the taking.

or:

I have a job opening. It's there for the taking.

Basically I'm telling you that you could get a job with me, if that option sounds good to you. I could easily substitute "if you want it" for "for the taking".

Looking at the ngram, we see that common ways to use the phrase include

  • there for the taking
  • free for the taking
  • [possessive pronoun] for the taking (i.e., his for the taking, yours for the taking, etc.)

I won't say those are the ONLY way the phrase can be used, but an answer can't delve into every possible usage of a phrase. Those three are a good start.

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There's also a relatively high number of

  • compensation for the taking

but those come mostly from legal documents; that's not a wording generally heard in everyday conversation.

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