The correct answer is: B. Less surplus
If assets are overvalued, the result would be less surplus. This is because the company would have paid more for the assets than they are actually worth. This would lead to a decrease in the company’s net worth, which would in turn lead to a decrease in the company’s surplus.
Option A is incorrect because if assets are overvalued, the company would have paid more for the assets than they are actually worth. This would lead to a decrease in the company’s net worth, which would in turn lead to a decrease in the company’s surplus.
Option C is incorrect because if assets are overvalued, the company would have paid more for the assets than they are actually worth. This would lead to a decrease in the company’s net worth, which would in turn lead to a decrease in the company’s surplus.
Option D is incorrect because new business strain is not a direct result of overvalued assets. New business strain can be caused by a number of factors, such as increased competition, changes in the market, or economic downturns.