Final answer:
Business applications are designed to streamline operations, increase efficiency, and improve decision-making, but they do not inherently create diversification, which is a strategic business decision involving market expansion and product line extension.
Step-by-step explanation:
Companies generally rely on business applications to streamline operations, increase efficiency, and improve decision-making. These are some of the primary goals when implementing such systems. However, business applications themselves do not inherently create diversification; this is a strategic business decision. Diversification often involves expanding into new markets, adding product lines, or possibly merging with or acquiring other companies to offer a broader range of products or services. While business applications can support the process by providing data and facilitating management tasks, the act of diversification requires more than just the implementation of software; it involves strategic planning and execution.