This question tests the understanding of vocabulary related to business operations. 'Expanding' is the correct choice as it directly relates to the growth or extension of business operations into new areas. 'Inflating' refers to increasing something beyond its normal size, often used in financial contexts. 'Increasing' generally refers to making something larger in quantity or size, and 'extending' can mean to make something longer or to offer something, neither of which precisely fits the context of business growth.