The Principle Difference Between the "Parenting Advantage" Framework and Porter's

question 36

Multiple Choice

The principle difference between the "parenting advantage" framework and Porter's "three essential tests" in evaluating the value-adding potential of diversification is:

• A)The "corporate parenting" framework focuses on the role of the corporate headquarters
• B)Porter's "three essential tests" emphasizes shareholder value creation;the "parenting advantage" considers value creation for all stakeholders
• C)Porter's "three essential tests" considers whether diversification creates shareholder value;"parenting advantage" considers whether a firm's ownership of a business creates more value than any other potential parent might
• D)Porter's value chain analysis applies to diversification decisions;"parenting advantage" applies to diversification and divestment decisions

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