Japanese Business Glossary

掛売り (kakeuri) refers to a type of sales transaction in Japan where goods or services are sold on credit. In this arrangement, the buyer receives the products or services immediately but agrees to pay for them at a later date, typically within a specified payment period.

This practice is common in both retail and business-to-business transactions, helping businesses manage cash flow and build relationships with customers by offering flexible payment terms. While kakeuri can facilitate increased sales and customer loyalty, it also requires careful management of accounts receivable to ensure timely payment and maintain financial stability. Proper credit assessment and clear agreements on payment terms are essential to mitigate the risks associated with selling on credit.

事業会社 (jigyo gaisha) refers to an operating company in Japan. This type of company is directly involved in producing goods or providing services as its primary business activity. Unlike holding companies, which primarily exist to own shares in other companies, a jigyo gaisha focuses on day-to-day operations, management, and growth within its specific industry.

Examples of jigyo gaisha include manufacturers, retailers, technology firms, and service providers. These companies are responsible for generating revenue through their core business activities, developing products or services, managing resources, and engaging with customers and clients.

高揚 (kouyou) refers to a heightened state of emotion, often characterized by feelings of exhilaration, excitement, or upliftment. This term is used to describe moments when individuals experience a significant boost in their mood or spirits.

In various contexts, such as during a motivational speech, a successful event, or a personal achievement, kouyou can be felt as an intense surge of positive emotions. It signifies a psychological uplift that can enhance motivation, improve morale, and foster a sense of accomplishment or joy.

決算報告書 (kessan hokokusho) is a financial statement report in Japan. It is a comprehensive document that summarizes a company's financial performance over a specific accounting period, usually a fiscal year. This report includes essential financial information such as the balance sheet, income statement, cash flow statement, and notes to the financial statements.

The kessan hokokusho provides insights into the company’s revenue, expenses, profits, and overall financial health. It is used by various stakeholders, including management, investors, creditors, and regulatory authorities, to assess the company's performance, make informed decisions, and ensure compliance with financial regulations. Preparing an accurate and detailed kessan hokokusho is crucial for maintaining transparency and trust in the company's financial practices.

繰越利益剰余金 (kurikoshi rieki jouyokin) refers to retained earnings carried forward in Japanese accounting. This term represents the portion of a company's profits that has been retained and accumulated over time, rather than being distributed as dividends to shareholders.

Retained earnings are used to reinvest in the business, pay off debt, or save for future needs and projects. The kurikoshi rieki jouyokin is reported on the company's balance sheet under shareholders' equity. It is a critical measure of a company's financial health, indicating its ability to generate profits and manage them effectively for growth and stability.

仕組債 (shikumisai) refers to structured bonds in Japanese. These are complex financial instruments that combine traditional bonds with derivatives to offer customized investment solutions.

Structured bonds are designed to meet specific investment goals, such as enhancing returns, reducing risk, or providing exposure to particular assets or markets. They often have features like variable interest rates, payments linked to the performance of an underlying asset (such as stocks, commodities, or indexes), or built-in options for the issuer or holder.

Investors in shikumisai can benefit from tailored financial strategies, but they also face higher risks due to the complexity and potential volatility of these products. Therefore, thorough understanding and careful consideration are crucial before investing in structured bonds.