Which term describes the person authorized to act on behalf of another in financial matters?

The term that describes a person authorized to act on behalf of another in financial matters is "Agent." An agent has the authority to make decisions, enter into contracts, and manage financial transactions for the principal, who is the person granting that authority. The relationship between an agent and a principal is legally binding, and the agent’s actions are typically considered to be acts of the principal, provided they stay within the scope of their authority.

An agent is often involved in various financial dealings, from negotiating contracts to managing investments, exemplifying a fiduciary duty to act in the best interest of the principal. This important role ensures that the principal's financial matters are handled effectively and according to their wishes.

In contrast, a trustee is responsible for managing assets held in trust for the benefit of beneficiaries, while a beneficiary is the person who receives the benefits from a trust or estate. The principal is the individual who grants authority to the agent but does not act on behalf of another. Understanding these distinctions is crucial for recognizing the specific roles within financial matters.