I forgot how to resize an image... I did look this up in the Help section, but was not able to find what I needed.
View > Show Bounding Box is on. Then merely click a corner handle and move it to resize an object.
The Bounding Box was a new feature in AI8 (circa 1998).
Or you can use the Scale Tool or simply double-click the Scale Tool in the tool bar to resize.
You can also use the menu --
Object > Transform > Scale
Or the Free Transform Tool, merely select the tool, grab an handle and move it.