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Trading Houses, Retail and Logistics

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Q1 | Classifying trading houses

Under which industry of the Japan Standard Industrial Classification is the sōgō shōsha (総合商社), the general trading house, given as an example?

  1. Non-store retail trade
  2. Retail trade in general merchandise, with 50 or more regular employees
  3. Wholesale trade in general merchandise, with 100 or more regular employees
  4. Commission agents and brokers, acting for others in trade for a fee
AnswerC. Wholesale trade in general merchandise, with 100 or more regular employees

Industry 5011 covers establishments that purchase and wholesale goods spanning several major groups and 3 or more groups, whose principal business cannot be identified, with 100 or more regular employees, and the general trading house is given as an example. Retail and non-store retail sell to individuals and households, which sets them apart from wholesale.

Q2 | Who wholesalers sell to

Which activity does the Japan Standard Industrial Classification give as the work of wholesale trade?

  1. Dispensing medicines on a doctor's prescription
  2. Selling goods for personal or household consumption
  3. Storing goods received in trust in a warehouse
  4. Selling goods to retailers or to other wholesalers
AnswerD. Selling goods to retailers or to other wholesalers

Wholesale trade means selling to retailers or to other wholesalers, and selling in large quantities or large amounts to industrial users such as construction and manufacturing businesses. Selling for personal or household consumption is retail trade, dispensing belongs to dispensing pharmacies, and storage to the warehousing business.

Q3 | Specialist trading houses

Which is an appropriate description of the difference between a general trading house and a specialist trading house?

  1. A general trading house does only wholesale and a specialist trading house only retail
  2. A specialist trading house deals only domestically and a general trading house only overseas
  3. A specialist trading house carries no inventory, and only a general trading house does
  4. A general trading house handles goods spanning several fields, while a specialist trading house narrows itself to one field
AnswerD. A general trading house handles goods spanning several fields, while a specialist trading house narrows itself to one field

The difference is the breadth of the fields handled. In the Japan Standard Industrial Classification too, the general trading house appears as an example of wholesale trade in general merchandise whose principal business cannot be identified. The split is not about holding inventory, about domestic versus overseas, or about wholesale versus retail.

Q4 | Business investment

Which describes the business investment (事業投資) side of a general trading house?

  1. Investing in companies, resource development and the like, and earning profit or dividends in proportion to the stake held
  2. Buying goods, holding them as one's own inventory, and reselling them for a margin on the trade
  3. Making products from raw materials in one's own factory and selling them to customers
  4. Standing between seller and buyer and brokering the sale of goods for a fee
AnswerA. Investing in companies, resource development and the like, and earning profit or dividends in proportion to the stake held

Business investment is the pattern of earning profit or dividends through an equity stake. Buying and reselling, and brokering for a fee, both describe the trading side, and manufacturing in one's own factory is the pattern of a manufacturer rather than a trading house.

Q5 | Brokers

What does the Japan Standard Industrial Classification say about industry 5598, commission agents and brokers?

  1. They supply raw materials they own to subcontracting factories, have products made and sell them
  2. They do not own the goods, and generally do not set prices, store or transport them
  3. They sell goods for personal or household consumption
  4. They buy goods, hold them as their own inventory, set a price and sell them
AnswerB. They do not own the goods, and generally do not set prices, store or transport them

Commission agents and brokers mainly act as agent for, or broker sales on behalf of, other establishments for a fee. They do not own the goods and generally do not set prices, store the goods or transport them. Supplying one's own raw materials to subcontractors describes a manufacturing wholesaler.

Q6 | Itochu's founding

Which event of 1858 (Ansei 5, 安政5年) does ITOCHU Corporation (伊藤忠商事株式会社) treat as its founding?

  1. The first Chubei Itoh began travelling and selling linen cloth
  2. The cotton yarn wholesaler Itoh Itoten opened for business in Osaka
  3. The kimono and drapery shop Benichu was founded at 2-chome, Honmachi, Osaka
  4. The shares were listed on the Tokyo Stock Exchange and the Osaka Securities Exchange
AnswerA. The first Chubei Itoh began travelling and selling linen cloth

The history on the official website treats as the founding the first Chubei Itoh travelling in 1858 by way of Osaka to Senshu and Kishu, selling linen cloth. Benichu was founded in 1872 and Itoh Itoten opened in 1893.

Q7 | Benichu

In ITOCHU's history, what sort of shop was Benichu, opened in Osaka in 1872 (Meiji 5, 明治5年)?

  1. A cotton yarn wholesaler
  2. A shipping agent
  3. A kimono and drapery shop
  4. A money changer
AnswerC. A kimono and drapery shop

Benichu, opened in 1872 at 2-chome, Honmachi, Higashi Ward, Osaka, was a kimono and drapery shop whose main lines were linen cloth of all kinds and woven fabrics. The cotton yarn wholesaler was Itoh Itoten, opened in 1893.

Q8 | Mitsui and Co. established

Which year does MITSUI and CO., LTD. (三井物産株式会社) give as its date of establishment in the company outline on its official website?

  1. 1876
  2. 1954
  3. 1902
  4. 1947
AnswerD. 1947

The company outline gives the date of establishment as July 25, 1947 (Showa 22, 昭和22年). The year 1954 is when Mitsubishi Corporation started afresh as a general trading house.

Q9 | Mitsubishi Corporation

In the history of Mitsubishi Corporation (三菱商事株式会社), in which year is it recorded as starting afresh as a general trading house and listing its shares on both the Tokyo and Osaka exchanges?

  1. 1937
  2. 1918
  3. 1954
  4. 1971
AnswerC. 1954

The history on the official website records that in 1954 Mitsubishi Corporation, a general trading house, started afresh and listed its shares on both the Tokyo and Osaka securities exchanges.

Q10 | Kokubu's founding

Which year does Kokubu Group Corp. (国分グループ本社株式会社) give as its year of founding?

  1. 1919
  2. 1858
  3. 1712
  4. 1876
AnswerC. 1712

The history on the official website gives 1712 (Shotoku 2, 正徳2年) as the founding and records that in 1880 the company gave up soy sauce brewing and began a wholesale business centred on selling food broadly. The year 1858 is the founding of ITOCHU and 1919 the founding of Yamato Unyu (大和運輸), today's Yamato Transport.

Q11 | Seven-Eleven established

In the history of Seven-Eleven Japan Co., Ltd. (株式会社セブン-イレブン・ジャパン), what happened in 1973 (Showa 48, 昭和48年)?

  1. The first store opened in Toyosu, Koto Ward, Tokyo, and convenience store operations began
  2. 24-hour opening began, and it was decided to move every store to opening all year round
  3. The trade name was changed from York Seven Co., Ltd. to Seven-Eleven Japan Co., Ltd.
  4. York Seven Co., Ltd. was established and a licence agreement was concluded with The Southland Corporation of the United States
AnswerD. York Seven Co., Ltd. was established and a licence agreement was concluded with The Southland Corporation of the United States

The history records that in November 1973 York Seven Co., Ltd. was established and an area service and licence agreement was concluded with The Southland Corporation of the United States. The first store in Toyosu came in May 1974, 24-hour opening began in 1975, and the change of name came in 1978.

Q12 | What makes a department store

What condition must an establishment meet to fall under industry 5611, department stores, of the Japan Standard Industrial Classification?

  1. It has the facilities to handle a general range of clothing, food and household goods but has no store, taking orders and selling by means of communication, and has 50 or more regular employees
  2. It retails a general range of clothing, food and household goods, mainly convenience goods, on a self-service basis
  3. It mainly handles medicines and cosmetics and also retails convenience goods such as household goods and processed food
  4. It has the facilities to handle a general range of clothing, food and household goods together with sales staff to attend to customers, mainly retails higher-priced goods such as clothing, jewellery and interior goods, and has 50 or more regular employees
AnswerD. It has the facilities to handle a general range of clothing, food and household goods together with sales staff to attend to customers, mainly retails higher-priced goods such as clothing, jewellery and interior goods, and has 50 or more regular employees

In the revision of July 2023 (Reiwa 5, 令和5年7月改定), 561 department stores and 562 general merchandise supermarkets were split into separate groups. Retailing generally on a self-service basis, centred on convenience goods, is the general merchandise supermarket (5621); centring on medicines and cosmetics is the drugstore (5641); having no store puts an establishment in major group 61, non-store retail trade. Retail trade in general merchandise not elsewhere classified with fewer than 50 regular employees is industry 5699, miscellaneous retail trade in general merchandise.

Q13 | Convenience stores

Which is part of the description of industry 5631, convenience stores, in the Japan Standard Industrial Classification?

  1. That the description includes having facilities handling a range of convenience goods, mainly retailing food and drink, and having 50 or more regular employees
  2. That it has facilities handling a range of convenience goods, provides services such as accepting payment of various bills, and mainly retails food and drink
  3. That the description expressly states self-service, alongside having facilities handling a range of convenience goods and mainly retailing food and drink
  4. That the sales floor is under 250 square metres
AnswerB. That it has facilities handling a range of convenience goods, provides services such as accepting payment of various bills, and mainly retails food and drink

In the revision of July 2023 (令和5年7月改定) convenience stores were placed in group 563 and industry 5631, under major group 56, retail trade in general merchandise. The description has 3 elements: facilities handling a range of convenience goods, services such as accepting payment of various bills, and mainly retailing food and drink. Conditions on the number of employees, the size of the sales floor and self-service are not attached.

Q14 | Drugstores

Which matches the description of industry 5641, drugstores, in the Japan Standard Industrial Classification?

  1. An establishment with facilities handling various goods, mainly handling medicines and cosmetics and also retailing a range of convenience goods such as household goods and processed food
  2. An establishment mainly retailing pharmacist-guidance drugs and over-the-counter drugs
  3. An establishment with facilities handling various goods, which is mainly a place where pharmacists dispense medicines and which also sells medicines and cosmetics
  4. An establishment mainly retailing cosmetics
AnswerA. An establishment with facilities handling various goods, mainly handling medicines and cosmetics and also retailing a range of convenience goods such as household goods and processed food

Among shops that all handle medicines, one mainly selling pharmacist-guidance drugs and over-the-counter drugs falls under industry 6031, retail trade in medicine other than pharmacies; one where pharmacists dispense and medicines are also sold falls under industry 6032, pharmacies; and one retailing only cosmetics falls under industry 6033, retail trade in cosmetics.

Q15 | Classifying e-commerce

Where a retail establishment with a store also sells by mail order over the internet, how is it classified in the Japan Standard Industrial Classification?

  1. It is classified in major groups 56 to 60 according to the kinds of goods handled
  2. The part using the internet is classified under division G, information and communications
  3. It is all classified under major group 61, non-store retail trade, whatever kinds of goods it handles
  4. It is not covered by the classification
AnswerA. It is classified in major groups 56 to 60 according to the kinds of goods handled

Non-store retail trade (major group 61) covers establishments that have no store and the like; where a retail establishment with a store also sells by mail order or through vending machines, the classification follows the kinds of goods handled.

Q16 | Chain business

Which matches the definition of a chain business (連鎖化事業) in the Act on the Promotion of Small and Medium Retail Business (中小小売商業振興法)?

  1. A business that, under a contract in a standard form, continuously sells goods or arranges their sale and also gives management guidance
  2. A business that manufactures goods and wholesales them
  3. A business that takes on logistics comprehensively on behalf of shippers
  4. A business that runs stores directly by sending its own employees as store managers and that continuously gives management guidance under a contract in a standard form
AnswerA. A business that, under a contract in a standard form, continuously sells goods or arranges their sale and also gives management guidance

This is the definition in Article 4, paragraph 5 of that Act. Where the arrangement lets members use trademarks and the like and collects membership fees or deposits, it becomes a specified chain business, and the duties to hand over a document and explain it before the contract arise.

Q17 | The pre-contract document

What does the Act on the Promotion of Small and Medium Retail Business require of a person carrying on a specified chain business?

  1. To hand over, within 1 year after the membership contract is concluded, a document stating matters such as membership fees and deposits together with the accounts for the latest business year, and to explain them
  2. To guarantee its members a certain level of sales
  3. To register its members' stores with the Minister of Land, Infrastructure, Transport and Tourism
  4. When about to conclude a contract with a person seeking to join, to hand over in advance a document stating matters such as membership fees and to explain it
AnswerD. When about to conclude a contract with a person seeking to join, to hand over in advance a document stating matters such as membership fees and to explain it

Article 11 of that Act requires a document stating money such as membership fees and deposits, the terms on which goods are sold, management guidance, the trademarks members may use, and the term, renewal and termination of the contract, to be handed over in advance and explained before the contract is concluded. It is not a provision that makes anyone guarantee sales.

Q18 | What a PB is

Which is an appropriate description of a PB, a private brand?

  1. A mark showing only the place of production, applied to goods with no registered trademark
  2. A brand that may only be applied to goods imported from overseas
  3. Goods planned by a retailer or wholesaler and sold under its own brand
  4. Goods planned by a manufacturer under its own brand and wholesaled widely to many retailers
AnswerC. Goods planned by a retailer or wholesaler and sold under its own brand

Goods planned by a manufacturer under its own brand and distributed widely are an NB, a national brand. Because the retailer or wholesaler sets the specification for a PB, it can build the selling price and the margin on its own side.

Q19 | Seven and i's private brand

Which private brand did Seven and i Holdings Co., Ltd. (株式会社セブン&アイ・ホールディングス) launch across the group in 2007?

  1. Topvalu
  2. Seven Premium
  3. Topvalu Green Eye
  4. Topvalu Best Price
AnswerB. Seven Premium

The history records the launch in May 2007 of Seven Premium as a private brand shared across the group. The other three are brands presented on the official website as private brands of AEON Co., Ltd.

Q20 | JUSCO

In the history of AEON Co., Ltd. (イオン株式会社), which is correct about JUSCO Co., Ltd., established in 1969?

  1. It was a headquarters company funded in equal shares by Okadaya, Futagi and Shiro
  2. On establishment it took the name AEON Co., Ltd. and became a pure holding company
  3. It was established as a pure holding company with no retail stores at all
  4. It was a sales subsidiary established with investment from Okadaya of Mie Prefecture alone
AnswerA. It was a headquarters company funded in equal shares by Okadaya, Futagi and Shiro

The official website records that JUSCO Co., Ltd. was established as a headquarters company funded in equal shares by Okadaya, Futagi and Shiro, with the aim of modernising retailing. The name comes from the initials of Japan United Stores Company. The change of name to AEON Co., Ltd. came in 2001 and the move to a pure holding company in 2008.

Q21 | General freight

What procedure must a person go through to run a general freight motor truck transportation business?

  1. Notice to the prefectural governor
  2. Permission from the Minister of Land, Infrastructure, Transport and Tourism
  3. Registration with the Minister of Land, Infrastructure, Transport and Tourism
  4. Notification to the Minister of Land, Infrastructure, Transport and Tourism
AnswerB. Permission from the Minister of Land, Infrastructure, Transport and Tourism

Article 3 of the Motor Truck Transportation Business Act (貨物自動車運送事業法) provides that a person seeking to run a general freight motor truck transportation business must obtain permission from the Minister of Land, Infrastructure, Transport and Tourism. Notification is enough for the light motor truck transportation business (Article 36 of the same Act).

Q22 | Light freight

What procedure must a person go through to run a light motor truck transportation business?

  1. Permission from the Minister of Land, Infrastructure, Transport and Tourism
  2. Notification to the Minister of Land, Infrastructure, Transport and Tourism
  3. Registration with the Minister of Land, Infrastructure, Transport and Tourism
  4. Certification by the Minister of Economy, Trade and Industry
AnswerB. Notification to the Minister of Land, Infrastructure, Transport and Tourism

Article 36 of the Motor Truck Transportation Business Act requires notification to the Minister of Land, Infrastructure, Transport and Tourism of the name and location of the business office, an outline of the vehicles used and the like. It covers businesses using light vehicles with three or more wheels and two-wheeled vehicles (Article 2, paragraph 4 of the same Act).

Q23 | Freight forwarding

Which combination of procedures under the Freight Forwarding Business Act is correct?

  1. Notification for both the first class and the second class
  2. Registration for the first-class freight forwarding business and permission for the second-class freight forwarding business
  3. Permission for both the first-class and the second-class freight forwarding business
  4. Permission for the first-class freight forwarding business and notification for the second-class freight forwarding business
AnswerB. Registration for the first-class freight forwarding business and permission for the second-class freight forwarding business

The first class requires registration with the Minister of Land, Infrastructure, Transport and Tourism under Article 3 of that Act, and the second class requires permission from the same Minister under Article 20. The second class combines forwarding by ship, air or rail with the pick-up and delivery either side of it as a single service.

Q24 | Warehousing

What procedure must a person go through to run a warehousing business?

  1. Permission from the Minister of Land, Infrastructure, Transport and Tourism
  2. A licence from the prefectural governor
  3. Registration with the Minister of Land, Infrastructure, Transport and Tourism
  4. No procedure is required
AnswerC. Registration with the Minister of Land, Infrastructure, Transport and Tourism

Article 3 of the Warehousing Business Act (倉庫業法) requires registration with the Minister of Land, Infrastructure, Transport and Tourism. The warehousing business means the business of storing in a warehouse goods received in trust (Article 2, paragraph 2 of the same Act).

Q25 | 3PL

Which is an appropriate account of 3PL as explained by the Ministry of Land, Infrastructure, Transport and Tourism (国土交通省)?

  1. Planning logistics strategy and proposing systems on behalf of a shipper, and taking that on comprehensively and carrying it out
  2. Taking on nothing but the storage of goods in a warehouse
  3. Handling nothing but freight transport to and from overseas
  4. A shipper carrying its own goods using only vehicles and warehouses it has prepared itself, outsourcing nothing at all to outside operators
AnswerA. Planning logistics strategy and proposing systems on behalf of a shipper, and taking that on comprehensively and carrying it out

The Ministry explains 3PL as a third party that is neither the shipper nor a mere transport operator, acting for the shipper's logistics department and providing advanced logistics services. What separates it from warehousing, which only takes on storage, is whether the proposals are taken on as well.

Q26 | Takkyubin

In the group history of Yamato Holdings Co., Ltd. (ヤマトホールディングス株式会社), in which year did Takkyubin (宅急便) go on sale in the Kanto region?

  1. 1929
  2. 1982
  3. 1976
  4. 1919
AnswerC. 1976

The group history records that Takkyubin went on sale in the Kanto region in January 1976 (Showa 51, 昭和51年). The year 1919 is the founding of Yamato Unyu Co., Ltd. (大和運輸株式会社), 1929 the start of Japan's first scheduled route service, and 1982 the change of the company name from 大和運輸 to ヤマト運輸, the reading Yamato Unyu staying the same while the kanji were replaced by katakana. The company is known in English as Yamato Transport.

Q27 | Scheduled route service

In Yamato Holdings' group history, what was begun in 1929 (Showa 4, 昭和4年) and is recorded as Japan's first scheduled route service?

  1. The launch of Takkyubin for the Kanto region
  2. Scheduled consolidated transport between Tokyo and Yokohama
  3. The nationwide launch of chilled Cool Takkyubin
  4. Entry into a packing business specialising in works of art
AnswerB. Scheduled consolidated transport between Tokyo and Yokohama

The group history records that scheduled consolidated transport between Tokyo and Yokohama began in June 1929 and that this was Japan's first scheduled route service. Entry into art packing came in 1958, the nationwide launch of Cool Takkyubin in 1988, and the launch of Takkyubin in Kanto in 1976.

Q28 | Nippon Yusen

In the history of Nippon Yusen Kabushiki Kaisha (日本郵船株式会社), which is correct about its birth in 1885 (Meiji 18, 明治18年)?

  1. It was born when Kyodo Unyu changed its name on its own
  2. It was born from the merger of Yubin Kisen Mitsubishi and Kyodo Unyu
  3. It was a company formed by taking over a state-run shipyard and the vessels it owned
  4. It was a company formed when the shipping arm of Mitsubishi Goshi was split off
AnswerB. It was born from the merger of Yubin Kisen Mitsubishi and Kyodo Unyu

The history records that Nippon Yusen was born from the merger of Yubin Kisen Mitsubishi and Kyodo Unyu and flew a flag with two stripes representing the joining of the two companies. In 1893 it opened the Bombay route, Japan's first ocean-going scheduled service.

Q29 | Container ships

How does Kawasaki Kisen Kaisha, Ltd. (川崎汽船株式会社) describe the present shape of its container shipping business on its official website?

  1. Rather than setting up a company jointly with others, it has moved the container business to a wholly owned subsidiary of its own
  2. Without teaming up with other companies, it still runs container ships on its own, using vessels it owns and its own sales network
  3. It has been integrated into Ocean Network Express, set up by the company together with Mitsui O.S.K. Lines and Nippon Yusen, 3 companies in all
  4. It has withdrawn, and no company has taken the business over
AnswerC. It has been integrated into Ocean Network Express, set up by the company together with Mitsui O.S.K. Lines and Nippon Yusen, 3 companies in all

The company explains that from April 2018 the container shipping business was integrated into Ocean Network Express, known as ONE, which the 3 companies set up. The business was not given up; it was brought together into a jointly owned company.

Q30 | The chain of supply

Which combination of roles at each stage of the supply chain is appropriate?

  1. Wholesalers pull together inventory, logistics and credit, and retailers hold the shelf and the contact with customers
  2. Wholesalers hold the shelf and the contact with customers, and retailers pull together inventory and logistics
  3. Retailers take the value added in manufacturing, and manufacturers handle storage and distribution processing
  4. Warehousing companies act as agents in trade, and trading houses store goods
AnswerA. Wholesalers pull together inventory, logistics and credit, and retailers hold the shelf and the contact with customers

Holding inventory, connecting many sellers with many buyers and taking on collection of payment is the wholesaler's function. Holding the shelf and facing the consumer is the retailer's function. In recent years retailers have reached upstream with private brands and manufacturers downstream with direct sales, so the boundary keeps moving.

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