Here denotes universal-existential sentences, with quantifier-free matrix and possibly empty blocks. Add constants for and consider
We show that is consistent. Suppose a finite subset is inconsistent. Combine its diagram facts as and its finitely many negative existential facts as . Replacing the new constants by a variable tuple gives the consequence
This is equivalent to a universal-existential sentence: move all the existential blocks to the front of the disjunction, using the usual nonempty-domain convention. If there are no negative existential facts, the consequence is simply . By hypothesis satisfies the displayed consequence. Its named tuple satisfies but none of the existential alternatives, a contradiction.
A model of contains a diagram copy of . Every existential formula false in is still false in ; every one true in is preserved by the embedding. Thus
Both preservation and reflection are required here; the atomic diagram alone would give only an ordinary embedding.
Let consist of all universal-existential sentences entailed by , and take . By (c), there is an existential embedding of into . By (b), embeds in with . After replacing structures by isomorphic copies, arrange these maps as inclusions. Since , it also satisfies and the construction can be repeated. This produces
The two interleaved chains have the same union . The elementary chain theorem gives . The are an ordinary chain of models of , so the assumed closure under unions of chains gives . Therefore . This proves
Conversely, universal-existential axioms are preserved in such unions: a finite universal tuple occurs in one stage, which already supplies its existential witnesses. The quantifier-free matrix has the same truth value in that stage and in the union. This also explains the inductive first-order theory characterization.