Japanese Business Glossary

代償 (daisho) refers to compensation or consideration provided in exchange for something else in Japanese legal and business contexts. It is a key concept in contracts and transactions, where one party offers something of value in return for receiving goods, services, or other benefits from another party. This compensation can be monetary or in the form of other assets, rights, or services.

The concept of daisho ensures that there is a fair and equitable exchange, balancing the interests of both parties involved. It underscores the principle of reciprocity in business dealings, where each party benefits appropriately from the transaction. Understanding and agreeing upon daisho is crucial for the validity and enforceability of contracts, as it reflects the mutual consent and consideration necessary for a binding agreement.

現物出資 (genbutsu shusshi) refers to capital contribution in kind, where assets other than cash are used as investment in a company. This can include tangible assets such as real estate, machinery, equipment, or vehicles, as well as intangible assets like intellectual property, patents, or trademarks.

In Japan, the process of genbutsu shusshi involves evaluating the value of the contributed assets to determine their equivalent monetary worth. This valuation must be fair and accurate to ensure that the capital structure of the company reflects the true value of the contributions. Often, a certified public accountant or a professional appraiser may be required to assess the value of these assets to ensure compliance with legal standards and to protect the interests of all stakeholders involved.

Genbutsu shusshi is commonly used in situations where the contributing party may have valuable assets but lacks sufficient cash. It allows companies to acquire necessary resources without immediate cash expenditure and can be a strategic way to leverage existing assets for business growth and development. This method of capital contribution helps diversify the company's asset base and can provide significant operational advantages depending on the nature of the contributed assets.

役員報酬 (Yakuin Hoshu) refers to executive compensation or remuneration paid to directors and officers of a company in Japan. This compensation can include salaries, bonuses, stock options, and other benefits provided to company executives for their services and responsibilities in managing the company.

The determination of Yakuin Hoshu typically involves several factors, including the company's financial performance, the executive's role and responsibilities, market standards, and the overall compensation strategy of the organization. The remuneration is usually decided by the board of directors and may require approval from the shareholders, particularly in publicly traded companies.

透明性 (transparency) and 公正性 (fairness) are crucial in setting Yakuin Hoshu to ensure that the compensation is justified and aligns with the interests of the shareholders and the company's long-term goals. Properly structured executive compensation can help attract and retain talented leaders, motivate performance, and align the interests of executives with those of the company and its stakeholders.

債務 (Saimu) refers to debt or liabilities in Japanese. It encompasses any financial obligation or amount of money that a person, company, or entity owes to another party. This can include loans, bonds, accounts payable, mortgages, and other forms of borrowed money or credit.

In a business context, saimu represents the company's obligations to pay back borrowed funds, purchase inventory on credit, or meet other financial commitments. Managing saimu is crucial for maintaining financial stability and ensuring that the company can meet its obligations without compromising its operational efficiency or financial health.

Saimu is typically classified on the balance sheet under current liabilities (those due within a year) and long-term liabilities (those due after one year). Effective management of saimu involves planning and controlling the repayment of debts, negotiating favorable terms with creditors, and maintaining a balance between borrowing and the company's ability to repay.

欠損 (kesson) is a Japanese term that translates to "loss" or "deficit" in English. It is commonly used in financial and business contexts to refer to a situation where expenses exceed revenues, resulting in a financial loss. This term can be applied to various scenarios, such as a company's financial performance, budget deficits, or shortfalls in revenue.

In accounting, a deficit or loss can impact a company's financial health and may require measures to address and mitigate the negative impact. This could include cost-cutting, restructuring, or seeking additional revenue sources.

In a broader context, kesson can also refer to any type of deficiency or shortfall, not just financial, such as a loss of resources, a gap in supply, or an absence of something essential. The term highlights the notion of lacking or being insufficient in a particular area.

費用 (hiyou) is a Japanese term that translates to "expense" or "cost" in English. It refers to the amount of money spent or required for a particular purpose. This term is commonly used in both personal and business contexts to describe expenditures associated with various activities, products, or services.

In a business setting, hiyou can include various types of expenses such as operating costs, production costs, administrative expenses, and marketing expenses. Managing and controlling these expenses is crucial for a company's financial health and profitability.

In everyday use, hiyou can refer to the cost of living, education expenses, travel expenses, and other personal expenditures. Understanding and managing these costs are essential for effective financial planning and budgeting.