Final answer:
The institution or person responsible for making investment, management, and distribution decisions in the best interest of another is known as a fiduciary.
Step-by-step explanation:
The institution or person responsible for making all investment, management, and distribution decisions in an account maintained in the best interest of another is known as a fiduciary. A fiduciary is legally obligated to act in the best interest of the person or entity they serve, and they must exercise loyalty, care, and skill in their decision-making process.
For example, a trustee managing a trust fund for the benefit of the trust beneficiaries is considered a fiduciary. They must carefully manage the assets of the trust, invest prudently, and distribute the funds according to the terms of the trust.
Overall, a fiduciary plays a crucial role in safeguarding the interests of others and ensuring responsible financial management.