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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The principle difference between the "parenting advantage" framework and Porter's "three essential tests" in evaluating the value-adding potential of diversification is that Porter's "three essential tests" emphasizes shareholder value creation, while the "parenting advantage" considers whether a firm's ownership of a business creates more value than any other potential parent might, regardless of its impact on shareholders. Porter's "three essential tests" are concerned with whether diversification creates shareholder value, while the "parenting advantage" framework is concerned with whether a corporate parent can add value to a business unit beyond what the business unit could achieve on its own or under another parent.

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