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
Correct Answer:

Verified
Correct Answer:
Verified
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