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Functional Requirements refer to what?

  1. Regulatory compliance needs

  2. Unique features defined by the customer for a specific product

  3. Budgetary constraints for projects

  4. General service performance guidelines

The correct answer is: Unique features defined by the customer for a specific product

Functional requirements specifically address the unique features and capabilities that a system, service, or product must possess to meet the needs of its users or customers. These requirements articulate what the system should do, detailing the functions that support the business objectives and fulfill customer demands. When customers specify particular needs or features that differentiate a product and drive its usability or effectiveness, these are captured as functional requirements. This aspect is essential for guiding the design and development process, ensuring that the end product aligns closely with user expectations. Therefore, identifying and documenting these unique features helps to create a product that is tailored and suitable for its intended use. Other categories, such as regulatory compliance, budgetary constraints, or general performance guidelines, do not define the specific functionalities needed by users, but rather focus on legal, financial, or broad performance aspects that might influence design or operation. These elements play supportive roles but do not capture the essence of what functional requirements represent.