18,The principle of "parenting advantage"-that a company should own a business only if it is able to add more value to that business than any other potential parent-is a more rigorous criterion for justifying diversification than Michael Porter's "three essential tests."

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The statement compares two criteria for justifying diversification - the principle of "parenting advantage" and Michael Porter's "three essential tests." It argues that the principle of "parenting advantage" is a more rigorous criterion as it requires a company to demonstrate that it can add more value to a business than any other potential parent, whereas Porter's tests may not necessarily ensure that a company has a competitive advantage in owning a business.

18,The Principle of "Parenting Advantage"-That a Company Should Own a Business