ABSTRACT
This chapter discusses the economic responsibility system in terms of how it functions in the relationship between the enterprise and the State, and its main features within the enterprise. The economic responsibility system is a type of management system, under the guidance of the State plan, which combines responsibility, authority, and profit together. The system has two components: the first concerns the economic relationship between the State and the enterprise. The second component concerns the regulation of the economic relationship within the enterprise. The economic responsibility system within the enterprise is the foundation of the economic responsibility between the enterprise and the State. Performance evaluation is an important aspect of the economic responsibility system. As mentioned above, the basic principles of the economic responsibility system include a combination of responsibility, authority, and profit; the unity of the interests of the State, the collective, and the individual; and the link.
