I think it refers to the weight it's tested to, meaning the breaking weight. I wouldn't trust it for much over 200 pounds, especially if there's any knots in it...
IIRC the four-strand cord is either 300 pound or 350 pound rating. As noted, knots SIGNIFICANTLY decrease the strength of cord. The best I remember seeing was 33% loss in strength, with 50% loss and more being more typical.
Knots decrease the load which cord or rope will safely bear, due to their ability to cut through the rope/cord, when sufficiently constricted. The loss can be far beyond 33%, depending on a variety of factors, such as type of knot, direction of pull, material which the cord's outer sheath is made from, etc.
Typically, working strength for any type of rope is as follows...
10% to 15% of breaking strength for life support uses...
15% to 20% for non-life support uses.
But for your own sake, don't use anything not specifically made for life support for that purpose.
Heres a link for you. PMI makes all kinds of rope and cord. Not sure if they do paracord but they do have some info on calculating strengths. Hope this helps.
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