Final answer:
Within the context of Business and Finance, the term 'principal' most commonly refers to the main amount of money borrowed or invested, not to be confused with the head of a school or a top-ranking official.
Step-by-step explanation:
The term principal can have several meanings depending on the context in which it is used. In the context of Business and Finance, such as defined by BRDA, principal commonly refers to the main amount of money borrowed or invested. This would not be the school principal, which is the head of a school, nor would it refer to the highest-ranking official or the person who has authority over others which can relate to the head of government or chiefs in centralized societies. Instead, it specifically deals with the core sum of money before interest or profit is added or considered.