The phenomenon that China's private enterprises are richer than three generations is that the owners of private enterprises are unwilling to hand over the management rights to others (professional managers), but inbreeding (father passes on children, son passes on grandchildren), and their advantages are decreasing, leading to the decline of family businesses.
The biggest advantage of the separation of enterprise ownership and management right is that it can make the enterprise resources and managers realize the optimal combination, give full play to the maximum benefits and bring the maximum profits to the owners. Because owners don't necessarily know how to operate, assets can only be added value if they are exercised, then who can accomplish the task of rolling asset appreciation is the manager (president) hired by the owner (shareholder), or the CEO we often hear. These managers have rich economic knowledge and marketing ability, but they don't know the assets. The system of separation of ownership and management rights of companies and enterprises provides opportunities for cooperation for those who don't know how to operate but want to find value-added opportunities for their assets and those who know how to operate but have no assets, thus solving this problem. As for the disadvantages, it is natural that operators may use their favorable position in managing related assets for personal gain, thus damaging the rights and interests of owners. But generally speaking, the separation of ownership and management rights is the best mode in line with the modern market economy, and its advantages outweigh its disadvantages.