1. Bodies under the Companies Act and in-house job titles are different things
Directors and company auditors are bodies laid down by the Companies Act; president and senior managing director are in-house names the company is free to give. First we sort out that these two layers are different things.
The words for the "important people" in a company mix two kinds: those fixed by law and those the company decides freely. What the Companies Act lays down are bodies such as the shareholders meeting, directors, the board of directors, the representative director and the company auditor; their powers are written in the law and they are entered in the commercial register. On the other hand, for names such as president, vice-president, senior managing director, managing director and division head, the Companies Act contains no definition of "what a president is." They are set by the company as its internal organization, so the same title of senior managing director carries different powers and different treatment at a different company. Not carrying the meaning of a title over to another company is the starting point in this field.
The Companies Act provides that a stock company must have one or two or more directors (Companies Act Article 326, paragraph 1). By contrast, a board of directors, an accounting advisor, a company auditor, a board of company auditors, an accounting auditor and so on are optional bodies that may be established if the articles of incorporation so provide (same Article, paragraph 2). In other words, "a stock company with no board of directors" is neither unlawful nor exceptional. Among small and medium-sized companies it is not at all rare to have only one director. Note that where a board of directors is established, there must be three or more directors (Companies Act Article 331, paragraph 5).
The one with authority to represent the company is the representative director. At a company with a board of directors, the board must select a representative director from among the directors (Companies Act Article 362, paragraph 3), and the representative director has authority to do any and all judicial and extra-judicial acts relating to the business of the company (Companies Act Article 349, paragraph 4). At many companies the name "president" is laid over the representative director, giving "representative director and president," but this merely writes the legal position and the in-house name side by side; there is no legal post called president.
Even so, the name "president" carries social credit. The Companies Act provides that where a director who is not a representative director is given a name such as president or vice-president, the company bears liability to a third party acting in good faith for acts done by that director (Companies Act Article 354). This is called an apparent representative director. It means that the title on a business card is important material for the other party's judgment. Also, "officers" as the Companies Act uses the word means directors, accounting advisors and company auditors (Companies Act Article 329, paragraph 1); an executive officer, whom everyday speech tends to count as an officer, does not fall within the officers of that provision. Executive officer is a name with no basis in the Companies Act, and some companies place them as employees while at others a director holds the post concurrently.
Bodies laid down by the Companies Act, and in-house names the company decides freely
Category
Examples
How it is settled
Bodies under the Companies Act
Shareholders meeting, director, board of directors, representative director, company auditor
Settled by the Companies Act and the articles of incorporation, and entered in the register
Officers under the Companies Act
Director, accounting advisor, company auditor
Elected by resolution of the shareholders meeting (Companies Act Article 329, paragraph 1)
The company's decision-making body made up of the shareholders. It elects officers such as directors (Companies Act Article 329, paragraph 1). At a company with a board of directors, the matters it may resolve are limited to those provided by law and by the articles of incorporation (Companies Act Article 295, paragraph 2).
director
A body the Companies Act makes mandatory; a stock company needs one or more (Companies Act Article 326, paragraph 1). A position responsible for management decisions, distinct from employee posts such as department manager.
board of directors
The body formed by all the directors. It decides the execution of business, supervises the directors' performance of their duties, and selects and removes the representative director (Companies Act Article 362). An optional body established where the articles of incorporation so provide.
representative director
A director with authority to represent the company. At a company with a board of directors, the board selects one from among the directors (Companies Act Article 362, paragraph 3).
company auditor, kansayaku (監査役)
A body that audits the directors' performance of their duties and prepares an audit report (Companies Act Article 381, paragraph 1). It stands on the checking side, not the side executing the business.
apparent representative director
The mechanism whereby, if a director who is not a representative director is given a name such as president or vice-president, the company bears liability to a third party acting in good faith for that person's acts (Companies Act Article 354).
executive officer, shikko yakuin (執行役員)
A name a company gives to a position responsible for executing business. It has no basis in the Companies Act and is not included among the officers of Companies Act Article 329, paragraph 1. Its standing differs from company to company.
articles of incorporation, teikan (定款)
The document setting out the company's basic rules. Whether to establish a board of directors or a company auditor is also provided in the articles (Companies Act Article 326, paragraph 2).
Worked examples
Someone asks you, "our company has no board of directors, is that not unlawful?" How do you answer?
Answer and reasoning It is not unlawful. What a stock company must have is one or more directors (Companies Act Article 326, paragraph 1), and a board of directors is an optional body established where the articles of incorporation so provide (same Article, paragraph 2). There are many stock companies with no board of directors.
What is the position under the Companies Act of a person whose card says "senior managing director"?
Answer and reasoning Their position under the Companies Act is that they are a director. Senior managing is an in-house name, so whether they have authority to represent the company cannot be told from the card alone. Whether there is representative authority is confirmed in the commercial register.
What does a company auditor do?
Answer and reasoning They audit the directors' performance of their duties and prepare an audit report (Companies Act Article 381, paragraph 1). They are not in a position of executing business but in a position of inspecting that execution.
Sources and basis: Companies Act (会社法) Articles 326, 329, 331, 349, 354, 362 and 381
2. The ranking of job titles and authority over decisions
We cover the usual line-up from chairman down to team leader, and the authority to approve that comes with a post. The overriding premise is that both the ranking and the authority differ from company to company.
In general people speak of a line-up running from the top as chairman (kaicho), president (shacho), vice-president (fuku-shacho), senior managing director (senmu), managing director (jomu), division head (honbucho), department manager (bucho), deputy department manager (jicho), section chief (kacho), subsection chief (kakaricho) and team leader (shunin); and it is customary to call the range from chairman to about managing director the officer layer, and from division head to about section chief the management layer. This is, however, no more than practice, and there is no law that lays down this ranking. Which is higher, division head or department manager, differs by company, and while some companies treat a team leader as management, others keep it as a name within the general staff. When you look at a card from another company, it is safer not to judge the ranking by your own company's yardstick but to check the standing at their company.
Posts are divided into line posts and staff posts. A line post has subordinates and stands in a position of issuing work instructions and moving the organization; department manager, section chief and subsection chief are of this kind. A staff post has no subordinates and supports the organization through expertise, and posts such as tanto-bucho or senmon-bucho, at department-manager-level treatment but without subordinates, are sometimes established. In other words, a card that says "department manager" does not necessarily mean the person has subordinates. This distinction has nothing to do with employment type or place of work, so do not confuse them.
Job titles sometimes carry words such as dairi (deputy), kokoroe (acting), hosa (assistant) and tsuki (attached to). Generally kacho-dairi means a position performing the section chief's duties in their place, kacho-hosa a position assisting the section chief, and bucho-tsuki a position placed directly under the department manager, but the weight of these too differs by company. In practice, looking at what the person can decide is more useful than counting rank.
The document that puts "what can be decided" in writing is the rules on job authority. At many companies these tabulate, by amount of spending and by type of contract, up to which post approval may be given: for instance up to 100,000 yen the section chief, up to 1,000,000 yen the department manager, and beyond that an officer. Knowing how far your own superior can decide tells you how far a ringi (稟議, circulated approval draft) needs to be escalated and cuts down on rejections. Note that even where authority is delegated to a lower-ranking person, the delegating side's responsibility for oversight does not disappear, nor does the receiving side's duty to report. Always make the scope of delegation clear in writing.
The line-up of posts as commonly described. Both the hierarchy and the names differ by company
Layer
Examples of posts
Main role
Officer layer
Chairman, president, vice-president, senior managing director, managing director
Decides management policy for the company as a whole
Senior management
Division head, department manager
Responsible for the division's targets and the allocation of resources
Middle management
Deputy department manager, section chief
Responsible for running the section's work and developing subordinates
A position responsible for running a division or section and directing subordinates. It generally means department managers and section chiefs, but where management begins differs by company.
line post
A post with subordinates that issues work instructions and moves the organization: department manager, section chief, subsection chief and so on.
staff post
A post without subordinates that supports the organization through expertise. There are forms such as tanto-bucho and senmon-bucho that hold post-level standing without having subordinates.
rules on job authority
Internal rules laying down which post may approve what, by amount and by type of matter.
authority to approve
The authority to give final approval to a matter. Customarily the post required rises with the size of the amount and the type of contract.
delegation of authority
A higher-ranking person entrusting their authority to approve to a lower-ranking one. The scope entrusted must be made clear in writing, and the delegating side's responsibility for oversight remains.
Worked examples
Between a client's section chief and your own subsection chief, which is higher?
Answer and reasoning There is no relation of higher and lower between different companies. The ranking of posts exists for your own company's chain of command and does not reach outside it. Respond with respect whatever the other person's post.
Why does a person with the title tanto-bucho have no subordinates?
Answer and reasoning Because they may be receiving department-manager-level treatment as a staff post. It follows from the distinction between line posts and staff posts and is nothing unusual.
You want to place an order for 800,000 yen. Whose approval is needed?
Answer and reasoning Check the company's rules on job authority. The approver changes not only with the amount but also with the type of contract, so look at the rules before drafting.
Sources and basis: ※ There is no public regulation on this. It is an organized summary of widely accepted business practice
3. What departments do, and the flow of ringi and approval
We cover what the main departments such as general affairs, human resources and accounting actually do, and the ringi mechanism by which things get decided inside a company.
A company's departments divide broadly into those that create sales and those that support them. Sales and manufacturing are the former; general affairs, human resources, accounting and the like are the latter, and the supporting side together is called the administrative departments or the corporate departments. What a new employee most wants to learn first is "where to go when in trouble." Broken equipment goes to general affairs, questions about attendance or transfers to human resources, expense settlement to accounting, checking a contract to legal, a computer fault to information systems. Simply knowing the right address changes the speed of your work.
Two that are easy to confuse because the names are similar are accounting (keiri) and finance (zaimu). Accounting is the work of recording daily transactions and preparing the financial statements; finance is the work of raising and managing funds, and negotiations with banks and cash-flow management belong to finance. General affairs and human resources are also often separate: general affairs handles company-wide housekeeping such as the building, equipment, document management and the administration of the shareholders meeting, while human resources handles people, that is, recruitment, placement, evaluation and training. At smaller companies, though, general affairs may double as human resources and accounting, and the division differs from company to company.
When something is to be decided inside the company, the document circulated among those concerned to collect approvals is the ringisho (稟議書). The drafter writes the purpose, content, amount and effect; the departments concerned are consulted; and the person with authority approves it. Granting approval is kessai (決裁); a person entrusted with authority in advance deciding on their own responsibility is senketsu (専決); and deciding in place of the approver while they are absent is daiketsu (代決). It is customary for a matter decided by daiketsu to be shown to the approver afterwards, which is called goetsu (後閲). Shortcuts such as borrowing someone else's seal and stamping it, or placing an order before approval, are all breaches of the rules.
Since ringi takes time, rather than sending the papers round out of the blue, it works to explain the intent to the departments concerned in advance, which is called nemawashi (根回し). Nemawashi is not a means of skipping the consultation; it is legitimate preparation for lining up the issues before the paper circulates and reducing rework. Most rejections come from three causes: "there is no basis for the amount," "there is no comparison with other options," and "it is not clear what is needed by when." If you confirm the approver and the departments to be consulted before drafting, and gather supporting documents such as quotations and comparison tables before circulating, it passes the first time.
The main departments and the work they handle. The division differs by company
Department
Main work
Go to them when
General affairs
The building, equipment, document management, administration of the shareholders meeting
Equipment has broken; you want to book a meeting room
A general term for the departments supporting the business divisions: general affairs, human resources, accounting, legal and so on. Also called corporate departments.
ringisho (稟議書)
An internal document for obtaining approval by circulating among those concerned, without holding a meeting. It is drafted with the purpose, content, amount and effect, plus supporting material.
kessai (決裁), approval
The person with authority giving final approval to a matter. Only after approval do you move on to placing the order, signing the contract and so on.
senketsu (専決), decision on delegated authority
A person entrusted with authority in advance deciding on their own responsibility. The scope is laid down in the rules on job authority.
daiketsu (代決), decision in place of another
Deciding in place of the person with authority while they are absent. It is customary to have them check it afterwards, which is called goetsu.
consultation, gogi (合議)
The procedure of obtaining the views and confirmation of the departments concerned before approval. Which departments are consulted is set for each type of matter: legal for contracts, accounting for spending, and so on.
nemawashi (根回し), groundwork
Explaining the intent to those concerned before circulating the paper, and grasping the issues and concerns in advance. Preparation for reducing rework.
Worked examples
The section chief is away on a business trip and the ringi is stuck. What do you do?
Answer and reasoning Check whether daiketsu is permitted under the rules. If it is, circulate it to the substitute approver and have the chief look at it as goetsu after returning. Borrowing their seal and stamping it yourself, or skipping the approval and ordering first, are not acceptable.
You are told to "ask accounting to raise the funds." Is that right?
Answer and reasoning At most companies raising funds is finance's job. Accounting centers on records and closing, so check how your own company divides the work and put the request to the right department.
Your ringi has been sent back. What do you review first?
Answer and reasoning Three points: the basis for the amount, the comparison with other options, and when it is needed. Check that the attachments are sufficient, and resubmit with the material the approver needs in order to judge.
Sources and basis: ※ There is no public regulation on this. It is an organized summary of widely accepted business practice
Check quiz
Q1 | Organs under the Companies Act
Which of these is an organ of a stock company that the Companies Act permits to be established?
Head of a business division (事業本部長)
President (社長)
Senior managing director (専務)
Company auditor (監査役)
AnswerD. Company auditor (監査役)
The company auditor (kansayaku, 監査役) is an organ provided for by the Companies Act and may be established if the articles of incorporation so provide (Companies Act, Article 326, paragraph 2 / 会社法 第326条第2項). President, senior managing director and division head are internal titles with no definition in the Companies Act, set by the company as part of its job structure.
Q2 | Number of directors
Which is correct under the Companies Act about the number of directors a stock company must have?
It need not have any
Five or more
Three or more
One or more
AnswerD. One or more
Companies Act, Article 326, paragraph 1 (会社法 第326条第1項) provides that a stock company must have one or more directors. Three or more is required where a board of directors is established (Companies Act, Article 331, paragraph 5 / 会社法 第331条第5項), which is not a requirement for every stock company.
Q3 | Representative director
In a company with a board of directors, who selects the representative director?
A vote of the employees
The board of directors
The shareholders meeting
The company auditor
AnswerB. The board of directors
Companies Act, Article 362, paragraph 3 (会社法 第362条第3項) provides that the board of directors must select a representative director from among the directors. What the shareholders meeting appoints is directors, not the representative director. In a company without a board, it may be determined by the articles of incorporation or a resolution of the shareholders meeting (Companies Act, Article 349, paragraph 3 / 会社法 第349条第3項).
Q4 | Scope of yakuin
Which combination falls within "officers" (yakuin, 役員) as used in Companies Act, Article 329, paragraph 1 (会社法 第329条第1項)?
Directors, accounting advisors (会計参与), company auditors (監査役)
President, senior managing director, managing director
Representative director, department head, senior adviser, adviser
AnswerB. Directors, accounting advisors (会計参与), company auditors (監査役)
That paragraph defines "officers" as directors, accounting advisors and company auditors. Executive officers, advisers and senior advisers, and president, senior managing director and managing director, are titles with no basis in the Companies Act and do not fall within this term. A department head is an employee's job title.
Q5 | The president's title
Which is an appropriate explanation of the title 「代表取締役社長」 (daihyō-torishimariyaku shachō — representative director and president) on a business card?
Calling yourself president requires a special resolution of the shareholders meeting
It sets the Companies Act position of representative director alongside the internal title of president
It shows that the person holds the organ called "president" under the Companies Act
President is a legal position above representative director
AnswerB. It sets the Companies Act position of representative director alongside the internal title of president
The Companies Act contains no definition of "president". Representative director is the position under the Companies Act, president is a title the company confers as part of its job structure, and 代表取締役社長 sets the two side by side.
Q6 | Apparent representative
Which is correct under the Companies Act where a director who is not the representative director is given the title of president?
So long as the registration is in place, the company bears no liability to third parties at all
That director automatically becomes representative director even without registration
The company is liable to third parties acting in good faith for that director's acts
Giving a director such a title is itself prohibited by the Companies Act
AnswerC. The company is liable to third parties acting in good faith for that director's acts
This is the apparent representative director provision, Companies Act, Article 354 (会社法 第354条). Conferring the title is not prohibited and does not confer authority of representation, but the company is liable to third parties who in good faith relied on that title.
Q7 | Duties of the auditor
Which does the Companies Act provide as the duty of a company auditor?
Concluding contracts with business partners on behalf of the company
Directing day-to-day sales activity to increase revenue
Auditing the directors' execution of their duties
Appraising employees and deciding their treatment
AnswerC. Auditing the directors' execution of their duties
Companies Act, Article 381, paragraph 1 (会社法 第381条第1項) provides that a company auditor audits the directors' execution of their duties and must prepare an audit report. Representing the company is for the representative director, and directing sales is on the business-execution side.
Q8 | The board of directors
Which is NOT correct under the Companies Act about the board of directors?
It has the role of supervising the directors' execution of their duties
It is a collegial body made up of all the directors
Every stock company is required to establish one
It has the power to select and dismiss the representative director
AnswerC. Every stock company is required to establish one
The board of directors is an optional organ that may be established where the articles of incorporation so provide, and is not required of every stock company (Companies Act, Article 326, paragraph 2 / 会社法 第326条第2項). The other three are exactly as provided in Companies Act, Article 362, paragraphs 1 and 2 (会社法 第362条第1項・第2項).
Q9 | The shareholders meeting
Which is correct under the Companies Act about what a shareholders meeting may resolve in a company with a board of directors?
It may resolve on nothing and merely receives reports
It may resolve on any matter whatsoever concerning the company
It may rescind any resolution of the board of directors
It is limited to matters provided for in the Companies Act and matters set out in the articles of incorporation
AnswerD. It is limited to matters provided for in the Companies Act and matters set out in the articles of incorporation
This is the provision in Companies Act, Article 295, paragraph 2 (会社法 第295条第2項). In a company without a board of directors, paragraph 1 of the same Article allows resolutions on any matter concerning the company, but in a company with a board the matters that may be resolved are limited.
Q10 | Executive officers
Which is an appropriate explanation of shikkō yakuin (執行役員), executive officers?
It falls within the officers referred to in Companies Act, Article 329, paragraph 1
The holder must always also be a director
It is a title with no basis in the Companies Act, and its standing differs from company to company
The Companies Act requires a company auditor to hold this post concurrently
AnswerC. It is a title with no basis in the Companies Act, and its standing differs from company to company
The officers in Companies Act, Article 329, paragraph 1 (会社法 第329条第1項) are directors, accounting advisors and company auditors. Shikkō yakuin (執行役員) is an internal title outside that list; some companies place them as employees and some have directors hold the post, so the standing differs from company to company.
Q11 | Rank order of titles
Which is an appropriate account of the usual order of job titles?
A kachō (課長), section head, ranks below a kakarichō (係長), subsection chief
A buchō (部長), department head, ranks above a kachō (課長), section head
A shunin (主任), team leader, ranks above a buchō (部長)
A kachō (課長) ranks above a buchō (部長)
AnswerB. A buchō (部長), department head, ranks above a kachō (課長), section head
Generally the order descends buchō (部長), kachō (課長), kakarichō (係長), shunin (主任). The names and the fine detail of the hierarchy differ by company, though, so do not measure another company's titles by your own company's yardstick.
Q12 | Line and staff
Which is an appropriate account of the difference between line and staff roles?
Line roles have subordinates and run the organisation; staff roles have no subordinates and support through expertise
Line means managers and staff means rank-and-file employees
Line means employees at head office and staff means employees at the factory
Line means permanent employees and staff means contract or dispatched workers
AnswerA. Line roles have subordinates and run the organisation; staff roles have no subordinates and support through expertise
The distinction turns on whether there are subordinates and on the role. There are staff posts at department-head level with no subordinates, such as a tantō-buchō (担当部長), and it has nothing to do with employment status or work location.
Q13 | Relations with outside companies
Which is an appropriate way to think about a meeting attended by a client's section head and your own department head?
Internal rank does not extend outside the company, so treat the other party with respect whatever their title
Your department head outranks them, so it is fine to give instructions to the client's section head
If the other side sends a section head, your side must match and send nobody above section head
There is no need to use keigo to someone of lower rank
AnswerA. Internal rank does not extend outside the company, so treat the other party with respect whatever their title
The ranking of job titles exists for your own company's chain of command and creates no hierarchy between you and people at other companies. Treat the other party with respect whatever their title.
Q14 | Authority regulations
What do shokumu kengen kitei (職務権限規程), regulations on authority of office, lay down?
Which post can approve what, and up to what level
How much each rank of employee is paid
Start and finish times and the number of days off
What the company sets out as its business purposes
AnswerA. Which post can approve what, and up to what level
Regulations on authority of office set out which post can approve what, by amount and by type of matter. Pay is set by the wage regulations, business purposes by the articles of incorporation, and hours and days off usually by the work rules.
Q15 | Procedure for an order
Which is NOT appropriate when you want to place an order worth 1 million yen (100万円)?
Have the quotation supporting the amount ready in advance
It is urgent, so place the order first and circulate the approval request afterwards
Consult the regulations on authority of office to confirm who the approver is
Check in advance which departments need to be consulted
AnswerB. It is urgent, so place the order first and circulate the approval request afterwards
Ordering before approval creates expenditure the company has not decided on and breaches the regulations. When it is urgent, that is all the more reason to explain the position and ask for approval to be expedited.
Q16 | Deputy and assistant
Which is an appropriate understanding of 「代理」 (dairi, deputy) and 「補佐」 (hosa, assistant) attached to job titles?
Their meanings are fixed by the Companies Act and they carry the same weight at every company
The Companies Act uniformly provides that a kachō-dairi outranks a kachō at every company
People with these words in their title always have subordinates
Generally dairi stands in for the role and hosa supports it, but the weight differs from company to company
AnswerD. Generally dairi stands in for the role and hosa supports it, but the weight differs from company to company
Both are customary titles with no basis in law. Their weight in the hierarchy also differs by company, so rather than counting up titles, the reliable move is to check what the person can actually decide.
Q17 | The section head's role
Which role is generally expected of a kachō (課長), a section head?
Convening the shareholders meeting and chairing it
Signing contracts with business partners on behalf of the company
Being responsible for running the section and developing its members
Preparing the audit report and submitting it to the shareholders meeting
AnswerC. Being responsible for running the section and developing its members
A kachō is a middle manager responsible for running the section and developing its members. Convening a shareholders meeting and signing as representative are the work of the governing organs, and the audit report is the company auditor's work (Companies Act, Article 381, paragraph 1 / 会社法 第381条第1項).
Q18 | Reading a business card
The card of someone you are meeting for the first time reads 「取締役営業本部長」 (torishimariyaku eigyō-honbuchō). Which reading of it is appropriate?
取締役 is the internal title and 営業本部長 is the position under the Companies Act
It says head of division, so the person certainly has authority of representation
As a division head, they rank below a department head at any company
They are a director under the Companies Act, and internally they head the sales division
AnswerD. They are a director under the Companies Act, and internally they head the sales division
Director (取締役) is the position under the Companies Act, and head of the sales division is the internal job title. Whether someone has authority of representation cannot be told from a card; check the commercial register. Whether a division head outranks a department head differs by company.
Q19 | The officer tier
Which combination of titles is most often spoken of as the officer tier?
Department head, deputy general manager, section head, subsection chief
Team leader, staff in charge, section member
Division head, section head, subsection chief, team leader
Chairman, president, senior managing director, managing director
AnswerD. Chairman, president, senior managing director, managing director
Chairman, president, senior managing director and managing director are the titles usually spoken of as the officer tier. Most companies place department head and below as employee job titles, though where the officer tier begins differs from company to company.
Q20 | Delegating authority
Which is an appropriate way to think about delegation of authority?
The person delegated to no longer needs to report to their manager
The scope delegated needs to be made clear in the regulations on authority of office or the like
The person delegating is completely released from managerial responsibility for the outcome as well
Delegation of authority means conferring a higher job title
AnswerB. The scope delegated needs to be made clear in the regulations on authority of office or the like
Unless the scope delegated is set out in writing, you get gaps in approval or double approvals. Delegation leaves the delegator's managerial responsibility intact and does not remove the delegate's duty to report. It is a separate matter from conferring a job title.
Q21 | Accounting and finance
Which is an appropriate general account of the division of roles between keiri (経理), accounting, and zaimu (財務), finance?
They are exactly the same work under two different names
Accounting raises funds; finance writes up the vouchers
Accounting records transactions and closes the books; finance raises and manages funds
AnswerC. Accounting records transactions and closes the books; finance raises and manages funds
Keiri (経理) records day-to-day transactions and produces the financial statements; zaimu (財務) handles money matters such as cash flow and dealings with banks. Recruitment is normally the job of jinji (人事), human resources, and supplies that of sōmu (総務), general affairs.
Q22 | Checking a contract
You want a contract received from a client checked. Which department do you normally consult first?
Quality assurance (品質保証)
General affairs (総務)
Legal (法務)
Purchasing (購買)
AnswerC. Legal (法務)
Reviewing contracts is the job of hōmu (法務), the legal department. Sōmu (総務) handles general matters such as premises and supplies, kōbai (購買) selects suppliers and places orders, and hinshitsu hoshō (品質保証) manages quality standards.
Q23 | What a ringisho is
Which is an appropriate explanation of a ringisho (稟議書)?
A document recording employees' working hours and breaks day by day
An internal document circulated to the people concerned to obtain approval without holding a meeting
A document reporting the results of each business year to shareholders
An external document setting out prices and payment terms for a client
AnswerB. An internal document circulated to the people concerned to obtain approval without holding a meeting
A ringisho (稟議書) is an internal document used to obtain, in writing, the consultation of the relevant departments and the approval of the decision-maker. Presenting prices to a client is done by a quotation, working hours by attendance records, and reporting results to shareholders by the financial statements.
Q24 | Senketsu and daiketsu
Which is an appropriate account of the difference between senketsu (専決) and daiketsu (代決)?
Senketsu is deciding in place of the approver when they are away; daiketsu is deciding within a scope delegated to you
Senketsu is deciding, on your own responsibility, within a scope delegated in advance; daiketsu is deciding in place of the approver while they are away
They mean exactly the same thing and are used interchangeably
Senketsu means approval given orally and daiketsu approval given in writing
AnswerB. Senketsu is deciding, on your own responsibility, within a scope delegated in advance; daiketsu is deciding in place of the approver while they are away
Senketsu (専決) is deciding on your own responsibility within authority delegated in advance; daiketsu (代決) is deciding in place of the approver while they are away. A matter decided by daiketsu is normally shown to the approver afterwards, a step called kōetsu (後閲).
Q25 | What gōgi is
Which is an appropriate account of gōgi (合議) on a ringisho?
The name for the situation where there are two or more approvers
The procedure for informing those concerned of the result after approval
The procedure for obtaining approval from an outside business partner
The procedure, before approval, for obtaining the views and checks of the departments concerned
AnswerD. The procedure, before approval, for obtaining the views and checks of the departments concerned
Gōgi (合議) is the step of getting the relevant departments' confirmation before approval. Most companies fix who must be consulted according to the matter: legal for contracts, accounting for expenditure, IT for systems.
Q26 | Sent back for revision
Your ringisho has been sent back. Which point is the lowest priority to revisit?
Whether there is a quotation supporting the amount
Whether the fonts match the company standard
Whether the results of comparing it with other options are written up
Whether it says by when it is needed
AnswerB. Whether the fonts match the company standard
Most rejections come from missing decision material: the basis for the amount, the comparison of options, and when it is needed. Assembling what lets the approver decide comes before the fine points of formatting.
Q27 | The approver is away
The section head who approves is away on a business trip and the ringisho has stalled. Which is NOT an appropriate response?
Borrow the section head's seal and stamp it yourself
Check whether the regulations allow daiketsu (代決), decision in their place
Have a matter decided by daiketsu reviewed by them afterwards (kōetsu, 後閲) once they return
Consult the deputy approver, explaining why it is urgent and the deadline
AnswerA. Borrow the section head's seal and stamp it yourself
Borrowing someone else's seal and stamping with it is forging an approval. Check the regulations for whether daiketsu is permitted, and where it is used, have the matter reviewed afterwards — that is the correct procedure.
Q28 | General affairs and HR
Which is an appropriate general account of the split between sōmu (総務), general affairs, and jinji (人事), human resources?
Both sit under accounting and take their direction from the accounting department head
General affairs handles premises, supplies, records and similar; HR handles recruitment, placement, appraisal and training
General affairs handles recruitment and appraisal; HR manages supplies and premises
General affairs is the department that carries out sales activity itself
AnswerB. General affairs handles premises, supplies, records and similar; HR handles recruitment, placement, appraisal and training
Sōmu (総務) covers general administration for the company as a whole; jinji (人事) covers matters concerning people. In smaller companies, though, general affairs may also cover HR and accounting, so the split differs from company to company.
Q29 | A faulty computer
Your work computer will not start. Which is the usual first point of contact?
Planning
Quality assurance / inspection
Finance
IT systems
AnswerD. IT systems
Internal systems and devices are managed by the IT systems department. Do not take the machine apart yourself or use a personal computer for work without permission; contact the responsible department first.
Q30 | Nemawashi
Which is an appropriate way to think about nemawashi (根回し), groundwork laid before circulating a ringisho?
Explain the purpose to the relevant departments in advance and find out the issues and concerns first
Nemawashi is improper lobbying and must not be done
It is best to circulate only the paperwork, keeping the purpose from the approver
It is a means of taking a matter straight to the approver, bypassing those who must be consulted
AnswerA. Explain the purpose to the relevant departments in advance and find out the issues and concerns first
Nemawashi (根回し) is legitimate preparation that lines up the issues before the paperwork circulates and so reduces rework. It is not for skipping the consultation step, nor for hiding what a proposal contains.
Practice: answer the questions on this page
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* The explanations are information for study purposes. Exam scope and systems change from year to year, so always check the official announcements of the organization that administers the exam.
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