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.

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FRESH START ACCOUNTING, upon emergence from bankruptcy, the consolidated financial statements of the "Successor Company" apply the provisions of fresh start accounting in accordance with Generally Accepted Accounting Principles (GAAP). Under fresh start accounting, a new reporting entity, the 'Successor Company', is deemed to be created, and the recorded amounts of assets and liabilities are adjusted to reflect their fair value. As a result, the reported historical financial statements of the 'Predecessor Company' generally are not comparable to those of the "Successor Company".

ORGANIZATIONAL ENABLERS are the skills and knowledge, the tools and resources, and the culture of the organization that will enable it to achieve strategy.

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