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CMA Final · Cost and Management Audit · Evaluation of Corporate Image

In a management audit of corporate image, which of the following is the most appropriate description of 'corporate image'?

Corporate image is the overall impression that stakeholders hold about a company, shaped by how it behaves, communicates and performs. It is perception-based rather than an accounting or statutory figure, which is why a management audit evaluates it through stakeholder views and conduct.

  1. AThe book value of a company's net assets shown in its balance sheet
  2. BThe overall impression of a company held by its stakeholders, formed from its conduct, communication and performanceCorrect
  3. CThe statutory rating assigned to a company by the Registrar of Companies
  4. DThe ratio of a company's market capitalisation to its annual turnover

Explanation

Corporate image is the perception stakeholders such as customers, employees, investors and the public hold about the organisation. It is built through behaviour, communication and performance. The other options describe financial or statutory measures, not perception.

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