Question

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for _____. a. financing b. managing his income c. managing his liquidity d. protecting his assets

Answer 1

Answer:

By getting hurt , Barry has gone for disability for four months.

For four months , Barry receives only 60% of his normal pay.

No information about ,liquidity that is about shares and bonds is given.

As well as Information about Assets of Barry is not given.

Since Barry is only getting 60% of his income,

So, Barry must manage his income first, that he should reduce his expenditure on those things which is useless, that is be less extravagant .

As financing is another option, which means he can start his own business by taking loan from financial institutions, such as bank, money lender or by any other way.

As, it is written here that, Barry will join the Company after four months,so he is not interested in financing.

Also, he must has saved some money,from previous work as well as from this work.So, In spite of financing He must focus on   Option(B): Managing his income.

is most appropriate option , for which the information is provided about Barry.

Answer 2

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for - b. managing his income

Explanation:

As Barry is hurt and now he will get almost half of his previous salary, so he must manage that money in accordance with his needs. He cannot spend the salary like earlier, now he must spend the money on important things only. So, its only his money management skills that will help him survive in this type of situation.