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Which is better, an enterprise owned by the whole people or a wholly state-owned enterprise?

An enterprise owned by the whole people refers to a commodity production and business operation entity whose property belongs to the whole people, which operates independently according to law, is responsible for its own profits and losses, and has independent accounting. Enterprises owned by the whole people are also called state-owned enterprises, but broadly speaking, state-owned enterprises also include state-controlled joint-stock companies, limited liability companies and wholly state-owned companies. Enterprises owned by the whole people are only one kind of state-owned enterprises.

A wholly state-owned enterprise means that all the assets of the enterprise are owned by the state, and the state grants the enterprise management right according to the principle of separation of ownership and management right. A wholly state-owned enterprise shall obtain the legal person status according to law, operate independently, be responsible for its own profits and losses, and bear civil liability with the property authorized by the state to operate and manage it.

Wholly state-owned enterprises in a broad sense (that is, enterprises owned by the whole people) include wholly state-owned companies and other state-owned enterprises.

Tips: The above information is for reference only.

Response time: 2021-05-11. Please refer to the latest business changes announced by Ping An Bank in official website.

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