Japanese Business Glossary

二親等 (nishintou) refers to the second degree of kinship in Japanese. This term is used to describe the relationship between an individual and their relatives who are two steps away in the family tree. In the context of family relationships, nishintou includes grandparents, grandchildren, siblings, and the immediate family members of one's spouse, such as parents-in-law.

賠償 (baishou) refers to compensation or indemnification in Japanese. It is the act of providing financial reimbursement or restitution to a party that has suffered loss, damage, or injury due to another party's actions or negligence.

Baishou can occur in various contexts, such as legal disputes, insurance claims, or business transactions. For example, if a company causes environmental damage, it may be required to pay baishou to affected communities or individuals. The goal of baishou is to restore the injured party to the position they were in before the loss occurred, ensuring fairness and accountability.

信用組合 (shinyou kumiai) refers to credit unions in Japan. These are cooperative financial institutions owned and operated by their members, who are typically individuals or small businesses within a specific community or industry. The primary purpose of a shinyou kumiai is to provide its members with affordable financial services, such as savings accounts, loans, and other banking services.

Unlike traditional banks, credit unions are not-for-profit organizations, meaning they prioritize the financial well-being of their members over generating profits. Any surplus income generated by a shinyou kumiai is usually reinvested into the organization or distributed to members as dividends. This community-focused approach helps promote financial inclusion and support local economic development.

終身医療 (shuushin iryo) refers to lifetime medical care insurance in Japan. This type of insurance provides coverage for medical expenses throughout the insured individual's entire life. It is designed to offer long-term financial protection against the costs associated with illness, injury, and hospitalization.

Shuushin iryo policies typically cover a wide range of medical services, including hospital stays, surgeries, and certain outpatient treatments. The main advantage of shuushin iryo insurance is that it guarantees continuous medical coverage without the need to renew the policy periodically, giving policyholders peace of mind that their medical needs will be financially supported regardless of their age or health condition.

連結 (renketsu) refers to the concept of consolidation or connection in Japanese. In a business context, it often pertains to the consolidation of financial statements. This process involves combining the financial statements of a parent company with those of its subsidiaries into a single set of financial statements.

The purpose of renketsu is to provide a comprehensive view of the financial position and performance of the entire corporate group, rather than just the parent company alone. This consolidated financial statement reflects the total assets, liabilities, equity, income, expenses, and cash flows of the combined entities, giving stakeholders a clearer understanding of the group's overall financial health.

不履行 (furikou) refers to non-performance or breach of contract in Japanese. It occurs when one party fails to fulfill their obligations as specified in a contract. This can include not delivering goods or services on time, failing to meet quality standards, or not making required payments. Such non-performance can lead to legal consequences, including claims for damages or contract termination. Addressing furikou typically involves negotiation, mediation, or legal action to resolve the issue and ensure that the rights and interests of the aggrieved party are protected.