True or False Circle clearly your answer - true or false: 3. True or False (1 point): One reason for a potential acquirer building a toehold purchase of 4.9% or less of the target company's shares is to make the bid more credible - it is easier to negotiate with target management if you have "put your money where your mouth is" by taking a position in the stock of the target. 4. True or False (1 point): One disadvantage of conglomerates is extra cost is often incurred due to the extra layers of management required to manage the conglomerate - for example, a conglomerate with three divisions would require not only management of each division, but an additional layer of management to oversee the conglomerate