Cella Ltd. has invested in certain projects to avall future benefits for its company. Which project could be classified as an expansion project?

A. Installing new air conditioners in the warehouse

B. opening new retail outlets in the city

C. obtaining new health policies for all its employees

D. buying a new machine in exchange for the old one

Opening new retail outlets in the city would be the project that could be classified as an expansion project.

Option: (B)

Explanation:

Expanding a company or a business refers to expanding the span and the outreach of the business through activities like increased manufacturing, sales, and marketing of the manufactured products. The activity of expansion can be undertaken by increasing the efficiency of the existing manufacturing plant, by establishing new manufacturing plants, by increasing the number of retail outlets through which the finished goods can be sold directly to the consumers, etc.

When the demand for a particular product increases, it is deemed intelligent to opt to expand the business in order to increase the quantity of output so that the prevalent demand can be met. As the output is increased, the need for more sales facilities also arises simultaneously. Hence, increasing the number of retail outlets is considered as a part of expansion projects.