The First Step in Budgeting Is to Evaluate Your Current

question 94

True/False

The first step in budgeting is to evaluate your current financial position by looking at just your income and expenses.

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Definitions:

Agent

Describes a person or entity authorized to act on behalf of another, known as the principal, in dealings with third parties.

Principal

In a contractual or fiduciary relationship, the principal is the party who authorizes an agent to act on their behalf.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Agency Relationship

A connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.