This package covers the First-Stage (1st Stage) written multiple-choice component of Japan's SME Consultant (中小企業診断士) examination: economics/finance, enterprise/operations, business law/information systems, and SME management/policy. Published first-stage guidance lists a written multiple-choice examination with seven 100-point subjects, and states a general pass basis of at least 60% overall with no subject below 40%, subject to the examination committee's determination. Confirm current dates, fees, venue rules, permitted materials and any revised criteria with the designated testing body, 一般社団法人日本中小企業診断士協会連合会. Quick key (A=first option): 1-A, 2-C, 3-A, 4-B, 5-A, 6-B, 7-C, 8-B, 9-A, 10-A, 11-B, 12-A, 13-B, 14-A, 15-B, 16-B, 17-C, 18-B, 19-A, 20-B. Use the explanations to diagnose errors; do not memorize the key alone.
The examined component and its boundaries
The first stage is a knowledge-and-application written multiple-choice examination; confirm all administrative details with the testing body.
The credential is Japan's SME Consultant (中小企業診断士). The first-stage component is a written multiple-choice examination. Published first-stage guidance lists seven subjects, each carrying 100 points: economics and economic policy; finance and accounting; enterprise management theory; operations management; business law; management information systems; and SME management and policy. The same schedule places the first stage over two days. For the 2026 cycle, the published schedule lists first-stage applications from 23 April to 27 May and the examination on 1-2 August; always verify current dates because schedules can change.
Published guidance states that the general first-stage pass basis is at least 60% of total points with no subject below 40%, subject to the examination committee's determination. It also states a subject-pass basis of 60% for individual subjects, again subject to committee determination. These are threshold rules, not study predictions: they mean a very weak single subject is a risk even when the total is strong.
The questions test recall, concept application, data interpretation and calculation. Expect definition discrimination, short scenarios, ratio and cost calculations, and 'which is best' choices. This package is a focused preview, not a full syllabus, and the 20 MCQs are supporting knowledge practice rather than a simulation of the full written paper. Confirm current application, fee, venue, permitted-material and scheduling details with the designated testing body, 一般社団法人日本中小企業診断士協会連合会.
Priority map: build a balanced scorecard for study
Prioritize calculable and cross-subject topics, but protect every subject from a below-40% outcome.
Build a subject risk map. Because published guidance treats a below-40% subject score as a risk to the overall result, do not abandon a subject you dislike. Start with a timed mini-diagnostic per subject, record errors by cause (definition, formula, reading, calculation, law nuance, data interpretation), and rank topics by error frequency times likely appearance.
High-yield clusters for this preview: equilibrium and elasticity; fiscal multiplier; liquidity and CVP; operating and combined leverage; strategy fit; EOQ; JIT conditions; PDCA; span of control; offer and acceptance; agency/apparent authority; subnet host counts; CIA mapping; resilience design; diagnostic sequence; cash conversion cycle; succession governance; policy rationale.
Use a four-column error log: topic, what I did, why it was wrong, and the rule I will apply next time. Review the log before every mixed set. The aim is transfer: can you explain the mechanism without the answer choices?
Economics: equilibrium, elasticity and policy transmission
Draw the model, solve equilibrium first, then interpret elasticities and multiplier effects.
Worked equilibrium and elasticity: demand Qd = 120 - 2P and supply Qs = 20 + 2P. Set 120 - 2P = 20 + 2P, so 100 = 4P and P = 25; Q = 70. At P = 30, Qd = 60 and Qs = 80, so there is a surplus of 20 units at that price. Point elasticity at equilibrium uses slope dQ/dP = -2: E = (-2)(25/70) = -0.714. Demand is inelastic at that point. If price rises from 25 to 30 and quantity transacted falls to 60, revenue changes from 1,750 to 1,800; with inelastic demand, a price rise can raise revenue, but check the quantity actually traded, not only quantity demanded.
Macro multiplier: with spare capacity and no crowding-out or price effects, an increase in government spending of 30 and a marginal propensity to consume of 0.75 gives a multiplier of 1/(1 - 0.75) = 4, so equilibrium income rises by 120 in this stylized model. In an open economy, also trace interest-rate, exchange-rate and import channels. State assumptions explicitly; exam options often differ because one assumes crowding-out or price effects and another does not.
Finance: ratios, CVP and leverage
Compute from definitions and state units; use leverage as sensitivity, not as a quality judgment.
Liquidity: current assets 240, inventory 90, current liabilities 120. Current ratio = 240/120 = 2.00. Quick ratio = (240 - 90)/120 = 1.25. The firm looks liquid on both measures, but the inventory weight matters: a slow-moving inventory can make the current ratio look safer than cash reality. Read ratios with the industry and cash cycle, not in isolation.
CVP: price 50, variable cost 30, fixed costs 60,000, current volume 4,000. Unit contribution is 20; break-even volume is 60,000/20 = 3,000 units; margin of safety is 1,000 units, or 25% of current volume. If fixed costs rise by 10,000, break-even rises to 3,500 units, leaving 500 units of safety at the same volume.
Leverage: sales 500, variable costs 300, fixed operating costs 120, interest 20, tax ignored. Contribution = 200; EBIT = 80; EBT = 60. DOL = 200/80 = 2.5; DFL = 80/60 = 1.333; DCL = 200/60 = 3.333. A 10% sales rise increases contribution to 220, EBIT to 100 and EBT to 80, a 33.3% increase in pre-tax profit. Leverage magnifies both directions; it is not automatically good or bad.
Enterprise and operations: strategy and flow
Match strategy to customers and capabilities; calculate lot sizes and diagnose flow before prescribing.
Strategy: a firm with a strong brand, high fixed costs and a declining mass market should not automatically cut price. If a premium niche is growing and the brand supports differentiation, the best fit is to target that niche with distinct features and consistent communication, while protecting cost discipline. A SWOT list is only a starting point; the tested skill is converting internal strengths and external opportunities into a coherent choice.
EOQ: annual demand D = 8,000, order cost S = 50, holding cost H = 2 per unit per year. EOQ = square root of (2DS/H) = square root of (2 × 8,000 × 50 / 2) = square root of 400,000 = about 632.5 units, so 632 or 633 depending on rounding. At EOQ, ordering cost and holding cost are approximately equal; here each is about 632.5 and total relevant cost is about 1,265.
JIT is a flow discipline, not a zero-inventory slogan. Stabilize delivery, reduce setup times, improve quality at source and use small lots so problems surface quickly. A factory with variable supplier lead times should not simply remove buffers; it should first reduce variability and build reliable replenishment. PDCA then gives a controlled improvement loop: plan a target and hypothesis, do a small trial, check measures, act by standardizing or adjusting. Span-of-control reasoning is contingent: standardized work with clear procedures can support a wider span, while novel specialist work often needs more coaching and a narrower span.
Law and information systems: formation, authority, CIA and resilience
Use element-based reasoning: offer/acceptance, reasonable reliance, host bits and control mapping.
Contract formation: an email that says 'I can offer 100 units at 2,000 yen each, subject to our written contract' may signal that the parties do not yet intend to be finally bound. A reply 'Accepted; ship Friday' can be an acceptance in form, but the condition and the parties' intent matter. The safe exam analysis is to test certainty of terms, intention to create legal relations, authority and any condition precedent; do not jump to 'a contract always exists' merely because price and quantity are stated.
Agency: if an employee without actual board authority signs with a supplier who reasonably believes the employee is authorized, the company may face liability through apparent authority or agency by estoppel, depending on the jurisdiction and facts. The practical lesson is to control authority, contract-signing rules and representations. For real disputes, confirm the governing law and obtain qualified legal advice.
Information systems: an IPv4 /29 has 32 - 29 = 3 host bits, hence 2^3 = 8 addresses, of which 6 are usable hosts after network and broadcast. For CIA mapping, encryption primarily supports confidentiality; offline backups primarily support availability; hashing supports integrity checking. Resilience design for checkout should combine timeouts, a circuit breaker, redundancy and a fallback queue rather than a single monolithic path. Monitoring is part of control, not overhead to remove.
SME management and policy: diagnosis, cash, succession and support
Diagnose before recommending; quantify cash conversion and separate family, ownership and management issues.
SME diagnosis should start before recommendations. Clarify the owner's objectives, gather financial and operating data, interview staff, identify symptoms, form hypotheses and only then prioritize actions. 'Sales are flat' is a symptom; 'receivables collection has slowed because credit terms were relaxed for a few large customers' is a testable hypothesis. A good diagnosis names evidence, gaps and the next data request.
Cash conversion cycle: annual sales 120m, COGS 72m, average inventory 18m, receivables 23m, payables 10m, using 365 days. Inventory days = 18/72 × 365 = 91.3. Receivable days = 23/120 × 365 = 70.0. Payable days = 10/72 × 365 = 50.7. CCC = 91.3 + 70.0 - 50.7 = 110.6 days. Rising receivable days from 45 to 70 is the immediate warning: growth is absorbing cash. Check customer credit, collection discipline, sales mix and bad-debt risk before simply borrowing more.
Succession: separate family goals, ownership and management. Identify who will manage, who will own shares, how the business will be valued, how the founder will be financed in retirement, and what governance will handle inactive shareholders. Use professional legal, tax and valuation advice. Policy support: measures such as subsidized loans for efficiency investment usually address market gaps or transition costs; evaluate additionality, eligibility and compliance rather than assuming higher profits. Confirm current programs with the relevant authority.
Integrated practice task and self-check rubric
Use the case to practice an open consulting note; the 20 MCQs check supporting knowledge, not a simulation.
Open-task practice: a family-owned food manufacturer has sales 120m, variable costs 72m, fixed costs 35m and EBIT 13m. Inventory is 18m, receivables 23m, payables 10m; equity is 25m and debt 35m. Sales are growing 8%, but receivable days have risen from 45 to about 70. The founder plans to retire; one child runs operations, while another is an inactive shareholder. Write a 500-700 word diagnostic note: (a) three symptoms with evidence; (b) two hypotheses and the data needed to test them; (c) calculate contribution margin ratio, break-even sales, DOL and CCC; (d) recommend three actions with risks or controls; (e) identify two items to confirm with legal, tax or valuation professionals.
Model calculations for self-check: contribution = 48m; CM ratio = 40%; break-even sales = 35/0.40 = 87.5m; margin of safety = 32.5m, about 27.1%; DOL = 48/13 = 3.69; debt/equity = 1.4; CCC = about 110.6 days as above. A strong answer ties the cash problem to growth, proposes collection and credit controls before expansion, and separates the succession decision from daily management.
Self-check rubric: Evidence and symptoms (0-2: none/vague/clear with data); Calculation accuracy (0-2: major errors/minor errors/correct units and formulas); Hypotheses and tests (0-2: assertions/partial/clear tests); Recommendations and risk controls (0-2: unsafe or generic/some logic/prioritized with risks); Professional confirmations (0-2: missing/generic/specific legal, tax, valuation or governance items). Score 8-10 strong, 5-7 developing, 0-4 revisit fundamentals. This is an open reasoning task; the 20 MCQs check supporting knowledge and are not a simulation of the written examination or of consulting practice.
Practical study sequence
Run a four-phase loop: diagnose, build, integrate, simulate and review.
Phase 1, diagnose (about two weeks): take one timed mini-set per subject, then classify every error by cause. Pick the two weakest topics in each subject and write a one-page rule sheet. Do not start with random new materials; start with evidence of what fails.
Phase 2, build (about four weeks): use 90-minute study blocks. For each block, learn one mechanism, solve five short calculations or scenarios, and explain one wrong answer aloud. Alternate economics/finance with enterprise/operations and law/information systems so that recall is spaced rather than blocked. Keep a formula sheet for CVP, leverage, EOQ and cash conversion, and a separate rule sheet for contract, agency and CIA.
Phase 3, integrate (about two weeks): do mixed sets that force subject switching. Once a week, complete the open-task diagnosis and mark it with the rubric. Re-derive formulas from memory and compare with your sheet. Phase 4, simulate and review (about two weeks): practise under the published time structure you have confirmed, then spend at least as long reviewing errors as taking the set. In the final week, revise your error log, not the whole syllabus. On the day, read the stem for the tested mechanism, eliminate options that violate a definition, calculate with units, and flag questions that need a second pass. Confirm all current administrative rules with the issuing body.
References and further reading
Use these references to explore the concepts and check the latest information from the relevant organizations.