The Fit to Current Size option in the Arrange menu fits the bounding box around the object at the size it is currently displayed on the screen.
You will often find it neater if the bounding box containing an object is the same size as the object, and you will need it to be if you want to add a border to the object using the Border tab in the object’s Properties dialog box.
Click on the object (or objects) to select them. A bounding box will surround each object.
On the Arrange menu, click on the Fit to Current Size option. Each object will be resized to the size of its bounding box currently displayed on the screen.