What is GMAT? A Complete Guide for Aspiring MBA Candidates

Ready to ace the GMAT and boost your MBA application? Discover the latest exam format, how to choose the best test option, and what score you need to stand out.

• Most top-tier MBA programs require the GMAT, though some schools offer waivers or accept alternatives like the GRE.
• The GMAT tests three key areas: Quantitative Reasoning, Verbal Reasoning, and Data Insights
• It evaluates problem solving, critical reasoning, reading comprehension, and data literacy skills essential for business school and leadership roles.
• The GMAT exam is challenging, but with proper preparation, it’s manageable.

What is the GMAT?

The GMAT (Graduate Management Admission Test) is a standardized exam used by business schools worldwide to assess the academic potential of applicants. Administered by the Graduate Management Admission Council (GMAC), the test measures critical thinking, analytical skills, and problem-solving abilities, which are key to succeeding in business school.

Originally launched in 1953, the GMAT is now a trusted measure used by 7,000+ programs globally. Whether you’re aiming for an MBA, a Master of Finance, or another business-related degree, the GMAT is often a fundamental requirement for admissions.

The GMAT Focus Edition

The GMAT Focus Edition is the latest and most streamlined version of the GMAT Exam, introduced to better align with the skills needed in today’s business landscape. This updated format focuses on three main sections: Quantitative Reasoning, Verbal Reasoning, and a Data Insights section, combining elements of Integrated Reasoning and data interpretation from the previous versions. The Focus Edition also allows you to review and change answers within each section, making it more flexible for test-takers. Additionally, it provides a shorter testing time—around 2 hours and 15 minutes—while maintaining the core assessment of analytical and problem-solving abilities that business schools seek.

Exam Structure and Format of the GMAT

The latest GMAT Exam takes only 2 hours and 15 minutes, featuring three sections with a total of 64 questions, and no longer includes a writing component. These three sections focus on the top skills employers consider most important for today’s business school graduates:

• Quantitative Reasoning: 45 minutes, 21 questions, assessing problem-solving skills
• Verbal Reasoning: 45 minutes, 23 questions, assessing critical reasoning and reading comprehension skills
• Data Insights: 45 minutes, 20 questions, assessing data literacy skills

1. Quantitative Reasoning (45 minutes, 21 questions)

This section assesses your ability to interpret and analyze data using quantitative techniques. You will encounter fewer questions than in the previous format, but they are more targeted towards problem-solving and data interpretation:

• Problem-Solving: Focuses on arithmetic, algebra, geometry, and data analysis, testing your ability to solve quantitative problems.
• Data Sufficiency: These questions provide a statement followed by two pieces of information, and you need to decide if either, both, or neither are sufficient to answer the question.

2. Verbal Reasoning (45 minutes, 23 questions)

This section measures your ability to read and understand written material, evaluate arguments, and correct grammatical errors. Similar to the old GMAT, but with a streamlined approach:

• Reading Comprehension: Test your ability to understand the logic, structure, and inference of written passages.
• Critical Reasoning: Focuses on evaluating arguments, identifying assumptions, and drawing logical conclusions.
• Sentence Correction: Tests grammar, sentence structure, and proper expression of ideas.

3. Data Insights (45 minutes, 20 questions)

This is a new section in the GMAT Focus Edition, combining elements of Integrated Reasoning and Data Interpretation from the previous format. It assesses your ability to analyze and interpret complex data sets from various sources:

• Data Sufficiency: Similar to Quantitative Reasoning, you must assess if the given data is enough to solve the problem.
• Multi-Source Reasoning: You’ll work with data presented in tables, graphs, or multiple tabs, analyzing the information to answer questions.
• Table Analysis & Graphics Interpretation: Requires you to evaluate and interpret visual data such as tables, graphs, and charts, answering questions based on that data.

GMAT Focus Edition emphasizes a data-driven approach with a refined focus on key reasoning skills, offering a more modern testing experience.

Test takers can bookmark uncertain answers and review as many questions as they like, but they are only allowed to change three answers per section. Additionally, they can complete the three sections in any order they prefer.

What Is a Good GMAT Score

A “good” GMAT score depends on the school.

The GMAT total score ranges from 205 to 805 (Focus Edition). For top-tier business schools such as Harvard, Stanford, and Wharton, a competitive GMAT score typically ranges from 700 to 740. These schools often have average scores around 720. Schools ranked in the top 20 generally look for scores in the range of 650 to 700. For well-regarded but less competitive programs, scores in the 600 to 650 range are often sufficient.

How to Register for the GMAT

Registering for the GMAT is a straightforward process:

1. Create an account on the official GMAC website (www.mba.com).
2. Select a test center or choose the online GMAT option if available in your region.
3. Pay the registration fee, which is typically $275.
4. Schedule a test date: The GMAT is offered year-round, so you can select a date that fits your preparation timeline.

You can take the GMAT up to five times in a 12-month period, but no more than eight times in your lifetime. Most business schools will see all your scores, but many will consider only your highest score.

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Where to Take the GMAT

1. Test Centers

• Official Locations: The GMAT is offered at official test centers worldwide. Find a nearby center and schedule your test on the GMAC website. Booking early is recommended as availability can vary.

2. Online GMAT Exam

• Take It at Home: The GMAT can also be taken online from your home, offering flexibility and convenience. Ensure you meet the technical requirements, such as a stable internet connection and a quiet space.

Choose the option that best fits your needs to ensure a smooth testing experience.

Preparing for the GMAT 

Preparing for the GMAT takes time, effort, and strategy. Here are some tips to get you started:

GMAT Preparation Tips

• Set a study schedule: Aim for at least 3 to 6 months of preparation, especially if you’re juggling a busy work schedule.
• Use official GMAT prep materials: Start with the Official GMAT Guide from GMAC, which includes real practice questions.
• Take practice exams: Simulate the test environment with full-length, timed GMAT practice tests to build endurance and get a feel for the exam format.
• Consider a prep course: If you prefer structured learning, enrolling in a GMAT prep course can provide you with expert guidance, personalized study plans, and additional resources.
• Focus on weak areas: Identify the sections where you struggle the most, whether it’s quant, verbal, or integrated reasoning, and allocate extra time to improving those areas.

What to Expect on GMAT Exam Day

On the day of the exam, make sure you arrive at the test center or log in for the online exam well ahead of time. Here’s what to expect:

• Check-in process: You’ll need to provide identification and go through security checks.
• What to bring: Bring a valid photo ID and any allowed items, such as a water bottle or light snacks for breaks.
• Test format: The exam is computer-adaptive, meaning the difficulty of questions in the quantitative and verbal sections will adjust based on your performance.
• Breaks: You’ll have two optional 8-minute breaks during the exam.

Staying calm and managing your time effectively during the test will help you perform your best.

How to Choose the Right GMAT Prep Course

Selecting the right GMAT prep course depends on your learning style, budget, and time frame. Here are some options:

• Online courses: Flexible and self-paced, online prep courses are ideal for those who prefer studying on their own schedule. Popular platforms like Magoosh and Manhattan Prep offer comprehensive online programs.
• In-person classes: If you thrive in a classroom environment, consider an in-person course like those offered by Kaplan or The Princeton Review.
• Private tutoring: For personalized one-on-one guidance, private GMAT tutoring can help address specific challenges and provide tailored strategies.

Compare the costs, reviews, and content of each option to find the best fit for your needs.

The GMAT exam is a critical step in your journey toward business school, testing essential skills in writing, reasoning, math, and verbal comprehension. While it may seem daunting, with the right preparation strategy and resources, you can achieve a competitive score that opens doors to top MBA programs around the world. Start your GMAT prep today, and take the first step toward your future in business leadership!

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