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Inclusive subtype entities are those that allow for instances of the subtype to also be considered instances of the supertype, meaning they can share attributes and behaviors of both. In contrast, exclusive subtype entities are those where instances of the subtype are distinctly separate from the supertype, meaning they cannot be classified as instances of the supertype at the same time. This distinction is crucial in data modeling and object-oriented design, where it affects how data is represented and interacted with.

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