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E3 Exam Study Guide: The Ultimate 2026 Practice Test

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E3 Questions and Answers

Question # 1

Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?

A.

The Board of Directors should have a minimum of six directors with the Board ' s tasks divided amongst them. The Board should also have a Chairman or Chairwoman who may serve as the Chief Executive if time permits.

B.

The Board should have no more than six members with clearly defined executive and non-executive responsibilities. To make the role more efficient Chairman or Chairwoman of the Board should also be the Chief Executive.

C.

There should be no restriction placed on the minimum or maximum number of Directors. The Directors '  roles should be shared but the Chairman or Chairwoman should not act also as the Chief Executive.

D.

The Chairman or Chairwoman should not have an executive role within the company. There should be at least two directors to carry out the Board ' s roles.

Question # 2

ABC is an online bank which has just reported substantial trading losses. It has received advice from a leading business consultancy that it should implement the following two strategies:

1. Take advantage of its reputation and brand image by entering a new industry.

2. Update all its networks to fifth generation (5G) as soon as possible. Which TWO of the following strategies has ABC been advised to implement?

A.

Sustainable strategy

B.

Foundational strategy

C.

Consumer strategy

D.

Corporate strategy

E.

Ethical strategy

F.

Functional or operational strategy

Question # 3

BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.

Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A.

BBB should include sustainability targets in performance appraisal.

B.

BBB ' s Board should make a commitment to sustainability.

C.

BBB should give all its staff training in sustainability.

D.

BBB should spend at least 0.1% of its Net Profit on sustainability projects.

E.

BBB should employ a new public relations consultancy.

F.

BBB should investigate the costs and benefits of establishing a sustainability department.

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