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Significance of the GMAT for MBA

You’re looking at graduate schools to pursue your MBA, and you have to score well on the GMAT in order to get into your dream school, but what is the GMAT and why do so many universities require GMAT scores for admission?

GMAT stands for Graduate Management Admission Test. The GMAT or Graduate Management Admission Council administers this test and requires GMAT test grades for admission to most business school MBA programs. Besides admission for a Master’s level business degree, the GMAT test result can also be used for admission to a Ph.D. school of

How does GMAT test my business knowledge?

The GMAT actually does not test specific skill sets in business, math or a quantitative skill in the subject content. The GMAT does not measure IQ or intelligence. GMAT gives a gauge of the executive functioning skills used in business practices, such as problem solving, comprehension, and reasoning. Simply stated, the GMAT implicitly provides the school with an indication of your ability to follow the MBA courses

What can I expect on the GMAT?

There are three test sections on the GMAT: AWA, Verbal and Quantitative. The three areas focus on the following:

  1. AWA stands for one issue, one argument, where the test taker is asked to compose an essay for each category. Your answer must be well organized, well written and factually based information to score well on this section.

  2. Verbal: contains 14 reading comprehension (how well you understand the written passage on the test), 10 critical reasoning questions (scoring how you make a decision, what types of decisions you are choosing, and choosing the best decision based on the situation given), and 17 sentence correction questions, measuring your grammar savvy.

  3. Quantitative: is contrived of data sufficiency and problem-solving. This section measures your ability to read charts and graphs and given a problem, choosing the best solution.
GMAT has a feature that provides candidates with the flexibility to customize their testing experience as they are able to choose the order of testing sections when they take the exam. Students taking the GMAT can choose what order they would like to take each section, giving the test taker a slight advantage.

Why GMAT Matters

Your GMAT score, coupled with your undergraduate GPA, creates a picture of your overall academic ability.

Many business schools use the GMAT as a large factor in your admittance into their institution. The GMAT can be the deciding factor between you and another candidate receiving an entry into the college or university.

The GMAT is essential in the assessment of an applicant to a business school. Institutions value the rating of this test for two reasons:
  1. Applicants can be compared to one another based on one common system
  2. Average scores can be used in order to create a requirement for the admission of applicants


  • 650 testing centers around the world administer GMAT Exam
  • 90% of new MBA enrollments are based on their GMAT score
  • Over 200,000 candidates take the GMAT annually
  • 7,000 Masters level programs use the GMAT for entrance into their program
  • GMAT is the most widely used exam for MBA program admissions over the past six decades

Updates to GMAT

GMAT is a computer adaptive test. You can expect to get different questions based on the answer to your previous question. When you answer a question correctly, the next question will have a higher difficulty. Answer incorrectly, your next question will have the same or lower difficulty. This pattern continues until you answer several questions in a row incorrectly, at which time the test will end.

The GMAC, who administers the test, has shortened the exam by a half hour. The GMAT exam is now 3 hours 30 minutes, including breaks. The sections containing verbal reasoning and quantitative questions are also shorter in length of time. All other testing areas for the GMAT remain the same, as far as testing time. Scoring will be dealt with in the same fashion as previous GMAT exam formats as only the unscored items have been removed by the testing committee.

Can’t I just take the GRE instead of the GMAT?

The simple answer is NO, you cannot take the GRE in lieu of the GMAT exam, however, some schools may require you to take both graduate level exams in order to be considered for admission to their program. These are two different types of tests, although both tests are used for graduate school entry.

These two exams have similar content on their tests - these both contain writing, quantitative and verbal test questions. The GRE is a slightly bigger, and less expensive test than the GMAT, yet it is still not the gauge business schools are looking for in their applicants. The two tests are scored and weighted differently, which gives these two exams a difference in the final score for the test taker.

The GMAT and GRE scores can be used up to five years after you’ve taken the test. Your highest score is the score you will use on your application. While you can retake the test several times, this can be very costly, with tests costing around $250 each. Also, consider the amount of time you are using taking the test over and over again.

Your best plan is to be well prepared, use the practice tests on this site to gauge your test progress. When you have reached your goal level of proficiency, register for and take the GMAT at your local testing center.

How using our practice GMAT test can raise your scores above your competition

Taking a practice test is always a good reference to get a good idea of how you would potentially score and your current skill set. We recommend taking the practice GMAT test three times to gain proficiency. To make the most of your practice test, follow these testing tips:

  1. Note your score, date test taken and sections you score well on and sections which need improvement to get a better score on your next test.

  2. Work on practice problems for the section or sections of the test which you did not perform well on. This is a great way to increase your overall score significantly. Practice a few problems every day to increase your knowledge in this area of the test.

  3. Understand why you did not answer the question correctly. Moving on and practicing more will not increase your score unless you understand why the answer you chose is incorrect.

  4. Find out why you chose the wrong answer and which answer is correct so you make the correct answer choice on similar problems further on in the test.
Make sure to set goals for each test you take, you can break down your goals by testing section or your overall score. Keep a running record of your test results to see how much progress you are making when you are using our site for your free practice tests. Watching your results will keep you on track to accomplish scoring your best on the GMAT exam.