CHAPTER 6•FINANCIAL KNOWLEDGE AND BUSINESS SAVVY 135
To Demonstrate Financial Knowledge and
Management Savvy
Understand Capital Types
The amount of information women have about various sources of
financing will directly affect their financing strategy. When entrepre-
neurs are unaware of capital alternatives, their choices are limited
and they are likely to rely on expensive and inefficient capital sources
(e.g., credit cards because they’re short term with high interest). As a
result, they will pay more for the money, incur higher risks, and ulti-
mately lower the value of the firm.
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By familiarizing themselves
with the advantages and disadvantages of the full range of capital
options, women will be in a better position to price and negotiate the
investment. ...