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Chapter 7 - How to obtain the right financing for your business. After studying the material in this chapter, you should be able to: Explain the importance of proper financing for a small business; tell how to estimate financial needs, and explain some principles to follow in obtaining financing; explain why equity and debt financing are used, and describe the role each plays in the capital structure of a small firm; distinguish the types of equity and debt securities; describe some sources of equity financing; describe some sources of debt financing.