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Explanation of Terms of the 2004 Survey

Establishment

For the definition of an establishment, as a general rule, the following prerequisites are satisfied;

  1. The economic activity is carried out under a single entity of management at one location, occupying  a demarcated area.
  2. The production and sale of goods or supply services is done on a continual basis, with the help of persons and equipment.

Type of legal organization

Individual proprietorship

This is an organizational state of an establishment owned and managed by an individual. It includes an establishment under the joint management of individuals and which is not incorporated.

Company

This represents a joint-stock company, a limited company, a limited and unlimited liability partnership, a mutual insurance company and a foreign company. 
A foreign company is a main branch office or a sales office of a company which was founded in a foreign country, and which was registered according to the prescription in the Commercial Law. 
A company with capital participation by a foreign company is not regarded as a foreign company.

Others

The generic term for Corporation excluding a company and Unincorporated association is Others.

Non-company corporation

This is an organizational state of an incorporated establishment excluding any company.
Included in this category are corporate judicial person, juridical foundation, social welfare juridical person, religious juridical person, medical juridical person, legal profession corporation, agricultural  (fishery) cooperative, cooperative association, labor unions (incorporated), mutual aid association, Japan Broadcasting Corporation (NHK), Shinkin Bank, juridical person in a public law, etc.

Unincorporated organization

This is an association that is not legally incorporated.
Included in this category are supporters' associations, alumni associations, crime prevention associations, associations of scholars, labor unions (unincorporated), etc.

Head or branch offices

Single-unit establishment

A single establishment without other establishments under the same management.

Head office

An establishment supervising all other establishments under the same management. In the case that a company has several head-offices, the establishment with director-general is defined as head office,  while other establishments are defined as branch offices.

Branch office

An establishment under the supervision of the head-office or another branch-office under the same management.

Opening year

This is defined as the year when the establishment opened the business at the current location.

Persons engaged

Persons engaged includes all persons who are engaged in the business of the establishment as of the date of the Survey, that is, persons dispatched to other organizations are also applicable to this category.
However, persons who do not receive payment (including payment in kind) from the establishment, such as dispatched persons from other organizations, are excluded from Persons engaged.
Family members working in the establishment of the individual proprietorship are treated as persons engaged, even if they are not paid wages and salaries.

Employees

The generic term for salaried directors, regular employees and temporary employees is employees.

Salaried directors

This category means salaried managers or directors of corporations or associations, irrespective of  whether they are full-time or part-time workers.
However, directors or managers who are concurrently regular employees and receive payment on  the same payroll scheme as regular employees are excluded from this category and are classified as regular employees.

Regular employees

Regular employees are employees engaged regularly in the business of the establishments. Temporary  workers are generally excluded from this category, but they are included if they are on a contract of  more than one month, or if they have been employed for 18 days or more in each of the past two months.

Temporary employees

Temporary employees are persons other than regular employees, who are on a contract not exceeding one month or who are employed on a daily basis.

Industry

As a general rule, establishments are classified in accordance with the minor groups of the "Standard  Industrial Classification for Japan" (as revised in March 2002). Some of them, however, are further divided into Industries (minor groups). 

Capital

This is the amount of capital of a joint-stock company and a limited company, the amount of investment of a limited and unlimited liability partnership, or the amount of funds of a mutual insurance company.

Type of opening

Moved from other location

An establishment which moved from other location, except in the following cases, is applicable to this category.

Separated from another enterprise or association

An establishment which became independent as the result of being given the goodwill of a shop by the  storekeeper, or an establishment which was separated from other enterprise, such as a subsidiary   company, are applicable to this category.

Opened as a branch

  An establishment which was opened as a branch office under the control of the head office in another  location is applicable to this category.

Converted from other business

An establishment which made a drastic conversion to another type of business, for instance, from a  laundry to a photographic studio, is applicable to this category.

Established

An establishment which newly started a business and the following are applicable to this category.
1    In the case of an establishment of individual proprietorship, a management right transfers to a person  other than an heir, or a manager changes.
2    Two or more establishments are merged to become a new company.

Income (annual)

This is annual income (the accounts of the one year from April 2003 to March 2004), that is, the total  income from all operations of the establishment (actual income including expenses, wages and salaries and  also consumption tax). Those incomes such as interest, dividend, income from the sales of land or buildings,  and borrowings are excluded.
In the 2004 survey, only income from individual proprietorship and companies is surveyed.

Primary industry , Secondary industry and Industry of Activity Base

Primary industry

The category for primary industries is as follows. If the business or activity under a single grouping of  the classification is executed within one establishment, the business or activity is to be taken as the  industry of that establishment. If the businesses or activities under two or more different groupings of  the classification are performed by one establishment, the industry of the establishment is decided by its main business or activity (the largest value of income over the last year).

Secondary industry

Secondary industry refers to industries other than the primary industry of an establishment which executes two or more businesses or activities.

Industry of Activity Base

The industry of activity base refers to industries counted by businesses or activities regardless of  primary industry or secondary industry. 

Other parties from which establishments receive income from the primary industry

This is classified into the following categories. 

Individuals (General consumers)

This means that income is gained from general consumers. 

Other enterprises or associations

Private 

This means that income is gained from dealings between establishments under the control of different  managements, excluding Government offices.

Government offices 

This means that income is gained from Government offices, excluding establishments of industrial civil service (waterworks department, transportation authority, hospitals, schools, social welfare facilities, etc). 

Same enterprises or associations 

This means that income is gained from the dealings between establishments under the control of the  same management, such as dealings between a head office and branch office. 

Expenses (annual)

This refers to the expenses which are required for operating a business, that is, first costs, tax and public dues, water, electricity and fuel expenses, traveling expenses, communication expenses, real estate and other rents, advertising costs, maintenance costs, the cost of expendable supplies, insurance against loss, depreciation expenses, welfare expenses and entertainment expenses. 

Wages and salaries (annual)

This is defined as the before-tax wages and salaries (including income tax and social insurance premium) to employees, including salaried directors. 

Equipment investment (annual)

This is defined as the expenses paid out for a plant or equipment with more than one year of durability and  a purchase price of more than 100,000 yen. The expenses of acquiring, or improving and reclaiming land are excluded

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