A(n) ________ is a person who, by agreement, authorizes an agent to act on his or her behalf in such a way that the agent's acts become binding.

A) agent
B) independent contractor
C) principal
D) employee

Principal

In legal and financial contexts, the main party to a transaction or the original amount of money invested or loaned, before interest.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, thus not entitled to employee benefits and subject to different tax treatment.

Agent

A person who is authorized to act for or in the place of another person (the principal).