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The Conceptual Framework Includes Two "Fundamental Qualitative Characteristics" That Must

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Essay

The Conceptual Framework includes two "fundamental qualitative characteristics" that must be present for financial reporting information to be useful.
Required:
List and describe the two fundamental characteristics of usefulness.


Definitions:

Competitive Economy

An economic system where businesses operate in a free market, competing for consumers' preference and resources, driving innovation, efficiency, and diversity of goods and services.

Conglomerate Merger

A merger between companies operating in unrelated business activities, aiming to diversify business operations and investments.

Unrelated Industries

Industries that have no direct business connection or overlap with each other.

Strategic Mergers

The process of combining two or more companies into one, with the aim of achieving strategic objectives such as market expansion, diversification, or efficiency gains.

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