The enterprise level is the highest, describing security policy for an entire enterprise. Below that, machine policy applies ...

The enterprise level is the highest, describing security policy  for an entire enterprise.  Below that, machine policy applies to all code run  on that computer.  User policy is a third level that can be defined based on  the currently logged-on user.  When security policy is evaluated, enterprise,  machine, and user levels are separately evaluated and intersected - meaning  that code is granted the minimum set of permissions granted by any of the  levels.
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