HYPOTHESIS Definition

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HYPOTHESIS is a proposition about cause and effect relationships. A hypothesis involves anticipating an effect, and a means of observing whether the anticipation is correct. A company’s strategy is based on a hypothesis – “If we do A, then B will result.” For example, a strategy map for a Balanced Scorecard explains the hypothesis behind an organization’s strategy.

Learn new Accounting Terms

PERPETUITY, in finance, is an annuity payable forever.

FULL CYCLE ACCOUNTING see ACCOUNTING CYCLE.

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