Japanese Business Glossary

事業承継 (jigyo shokei) refers to business succession in Japanese. It involves the process of transferring the ownership and management of a business from the current owner to a successor. This process ensures the continuity and stability of the business, especially in family-owned enterprises.

Key aspects of jigyo shokei include identifying a successor, which can be a family member, a key employee, or an external buyer. It also involves planning the transition by developing a detailed plan for how the transfer of responsibilities, management, and ownership will occur. Additionally, it requires training and preparation to ensure the successor is adequately prepared to take over the business, which may involve training and mentoring. Legal and financial arrangements are also necessary to address aspects such as transferring ownership, handling tax implications, and securing financing if needed.

Effective business succession planning is crucial for maintaining the health and longevity of a business, ensuring that it continues to thrive under new leadership.

社内預金 (shanai yokin) refers to an in-house savings system offered by some companies in Japan to their employees. It allows employees to deposit a portion of their salary directly with the company, which then pays interest on these deposits.

This system is similar to a bank savings account but is managed internally by the company. The interest rates offered on shanai yokin are often higher than those provided by traditional banks, making it an attractive option for employees.

Shanai yokin serves as a benefit for employees, encouraging savings and providing them with a secure place to grow their funds. For companies, it can also enhance employee loyalty and retention by offering this additional financial service.

特定非営利活動法人 (tokutei hieiri katsudo hojin) refers to a "Specified Nonprofit Corporation" in Japan. This type of legal entity is established to conduct non-profit activities that contribute to the public interest, such as social welfare, education, cultural promotion, and environmental protection.

These organizations, often abbreviated as NPOs, must meet specific criteria to gain and maintain their status. They must operate without the intention of distributing profits to their members, directors, or officers. Instead, any surplus generated must be reinvested into the organization's activities. They also need to comply with regulations regarding governance, transparency, and reporting to ensure accountability and public trust.

The designation of tokutei hieiri katsudo hojin allows these organizations to benefit from various tax exemptions and incentives, facilitating their ability to raise funds and operate effectively. This structure supports their mission to address societal needs and improve the well-being of communities.

手形裏書 (tegata uragaki) refers to the endorsement of a bill of exchange or promissory note in Japanese. This endorsement signifies the transfer of the rights to the document from the original holder (the endorser) to another party (the endorsee).

When a bill of exchange or promissory note is endorsed, the endorser signs the back of the document. This action transfers ownership and the right to receive payment to the endorsee. Endorsements can be used for various purposes, such as settling debts, transferring credit, or as a form of payment in commercial transactions.

Tegata uragaki is a common practice in business and finance, facilitating the smooth transfer of financial instruments and ensuring that obligations are met through an established and recognized process.

曽祖母 (sosobo) means "great-grandmother" in Japanese. This term refers to the mother of one's grandparent. In family lineage, a 曽祖母 is two generations above an individual. The term is used to describe the familial relationship in both formal and informal contexts, acknowledging the extended family structure and ancestral connections.

決算期 (kessanki) refers to the fiscal period or accounting period in Japanese. It is the specific time frame at the end of which a company or organization prepares its financial statements and reports its financial performance. This period can be annually, semi-annually, quarterly, or monthly, depending on the company's reporting requirements and practices.

The kessanki typically culminates in the preparation of key financial documents such as the balance sheet, income statement, and cash flow statement. These documents provide insights into the company's financial health, profitability, and operational efficiency. The end of the kessanki is a critical time for companies, as they must ensure accurate financial reporting, compliance with regulatory requirements, and assessment of their financial position for stakeholders, including investors, creditors, and regulatory authorities.