What conditions are required to establish parent child relationship between two records? What are the advantages with that?

Conditions are:

1) The child record should have all the key fields of parent record and at least one more key field other than the key fields of parent record.

2) We should mention the parent record in the record properties of child record.

3) We can not go for more than three levels of parent/child relationships.

Advantages are:

1) To have referential integrity.


2) No need to enter information again and again