What does business diversification aim to achieve?

Business diversification primarily aims to expand into new product lines or markets. This strategy involves a company broadening its scope by adding new products or entering new markets, which can help manage risks and reduce dependence on existing revenue streams. By diversifying, a business can leverage its existing resources, capabilities, and market knowledge to create new growth opportunities.

This approach can lead to several benefits, such as mitigating risks associated with market fluctuations, tapping into new customer segments, and generating additional revenue sources. When a company introduces products or services that are distinct from its current offerings, it allows for greater flexibility and potential stability in the long term, as it is not solely reliant on the success of its core business.

Enhancing market share, reducing operational costs, or improving employee satisfaction might be goals that some businesses pursue, but they are not the main objective of diversification. Instead, diversification is fundamentally about expanding the company's portfolio and reducing risk through new ventures, making option B the correct choice.