Answer:
Expansion can be justified for various reasons, depending on the context. Some common causes for expansion being justified are:
1. Increased demand for goods or services: If a business is experiencing increased demand for its products or services, expanding can help meet this demand and increase revenue.
2. Diversification: Expanding into new markets or product lines can reduce a business's reliance on a single source of revenue, making it more resilient to economic fluctuations.
3. Economies of scale: Expanding can lead to lower costs per unit of production, which can increase profitability.
4. Increased efficiency: Expanding can enable a business to optimize its operations and improve its overall efficiency.
5. Competitive advantage: Expanding into new markets or product lines can help a business gain a competitive advantage over its rivals.
6. Access to new resources: Expanding can give a business access to new resources, such as raw materials, talent, or technology, that can help it grow.
7. Geographic expansion: Expanding into new geographic regions can help a business reach new customers and tap into new markets.