What authority does a power of attorney provide to the attorney in fact?

The power of attorney grants the attorney in fact the authority to transact business for another person, which encompasses a wide range of responsibilities, including managing financial affairs, signing documents, and making decisions on behalf of the principal. This role is essential as it allows the attorney in fact to perform actions and make choices that are binding on the principal, effectively representing their interests when they are unable to do so themselves.

While the other options touch on aspects related to authority, they do not encompass the broader scope of the powers granted by a power of attorney. For instance, interpreting legal documents may come into play in a specific context but isn't a primary authority given. Acting independently without client approval can lead to issues of trust and accountability, which are not inherent in the power of attorney framework. Lastly, the provision of making health care decisions, while an aspect of certain types of powers of attorney (specifically a medical power of attorney), does not reflect the full extent of what a general power of attorney allows. Therefore, the correct answer accurately captures the comprehensive authority transferred to the attorney in fact to manage business transactions on behalf of another individual.