by 
The Curious Bag
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Short for "Power Take Off," a PTO is related to a vehicle's transfer case in that it is designed to split power between the primary drive and another accessory. These devices come standard on many pieces of industrial equipment and are a requirement for duty on most.
PTO Purpose
Many industrial machines require power to run major accessories like hydraulic pumps, blower pumps and winches.
Engagement
Depending on the application, some PTOs can only be engaged while the transmission is in neutral, but others are designed to run constantly.
Function
A PTO works much like a four-wheel-drive truck's transfer case and can use either chains or gears run off of the engine's crankshaft to send power to a separate drive shaft.
Location
Most factor PTOs are mounted between the engine and transmission, whereas add-ons may bolt to the back of the tranny case.
Shafts
PTO shafts use two or more Cardan "U-joints" for flexibility and are similar to the main drive-shaft in appearance and function.
Source:
Kozmaksanpto.com: PTO Introduction
Andrew.cmu.edu: Small Tractor Data
Resource:
youtube.com: PTO Drive in Action (Video)
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