GMAT – Everything You Need To Know

If you have ambitions to progress in your business career, you’ll know that a Master of Business Administration (MBA) opens doors and prepares you for the business world like no other qualification.

TL;DR

• The GMAT is the most widely-accepted entrance exam for business school
• It consists of three sections. Each section takes 45 minutes, so the total testing time is two hours and 15 minutes. You receive a score between 205 and 805
• Business schools value the GMAT because it signals your commitment to a business education, gives you a solid grounding in the business fundamentals, and acts as an accurate predictor of academic performance

You’ll probably also know that to study an MBA or business master’s, you’ll likely need to take the Graduate Management Admission Test (GMAT).

The GMAT is the most widely accepted entrance exam for business school. It’s the only admissions exam designed specifically for business school and assesses relevant business skills as opposed to just general skills.

The exam helps business schools make admissions decisions and helps you demonstrate your commitment and eligibility for the business program of your choice.

GMAT in brief

The GMAT has a maximum score of 805 and a minimum score of 205. It consists of three sections, each with a maximum score of 90 and a minimum score of 60. Each section takes 45 minutes, so the total testing time is two hours and 15 minutes.

The test takes less time to complete than other graduate school exams and is flexible, too: you can complete the sections in any order you want, review questions, and revise up to three answers per section.

Section 1: Quantitative Reasoning

The Quantitative Reasoning section assesses mathematical ability and numerical literacy, testing your ability to reason, solve problems, and interpret data.

It measures the skills you will use in business subjects such as finance, accounting, and statistics.

Section 2: Verbal Reasoning

The Verbal Reasoning section evaluates your reading comprehension and critical reasoning. You will be assessed on your ability to comprehend and draw inferences from written material and to evaluate arguments through multiple-choice questions.

Reading Comprehension passages of up to 350 words are followed by a set of questions that test your ability to interpret the text, to draw inferences from it, and identify relationships between elements of the content. Critical Reasoning measures your ability to draw conclusions from short arguments.

Section 3: Data Insights

The Data Insights section tests your ability to read and interpret data in multiple formats, including tables and graphs. It is designed to mimic today’s business world, in which managers assess data from multiple sources to identify patterns, make decisions, and solve business problems.

How has the GMAT changed?

In late 2023, the GMAT was updated to ensure relevance and alignment with the skills required to succeed at business school and the world of work. It was also made shorter with more flexibility for the test-taker.

Each change to the GMAT exam is designed in partnership with leading business schools and prospective business school applicants. Here are some of the main differences between the new GMAT Exam and the previous iteration. (While it is no longer possible to sit the previous GMAT exam, it you sat it within the last five years, you can still submit your score when you apply to b-school.)

Why take the GMAT?

The GMAT was created specifically for business school admissions and is accepted by more than 7,700 programs worldwide.

This commitment to a business education is highly valued by admissions teams. Even when the GMAT is not a compulsory part of the application process, admissions managers may still ask you to supply a score later in the process if your application is not as competitive as others in the applicant pool.

The GMAT is also an accurate predictor of academic performance. Perform well in the GMAT, and you’ll likely perform well in your business program.

What score do business schools look for?

The definition of a “good” score is different for every school and applicant.

Most programs do not have a minimum GMAT score; instead, they tend to publish an average or a range of GMAT scores achieved by their most recent class. This can provide a useful benchmark, but getting a lower GMAT score won’t rule you out and a higher GMAT won’t guarantee you admission. Admissions teams will judge your application based on a wide range of factors - your GMAT score is just one of them.

It means that you shouldn’t rule out programs if you don’t achieve their average GMAT score, especially if it is close to the published range. Your score will be one part of your application, and you may have considerable strengths in other areas. Contact the admissions team for your chosen program to seek their guidance and be prepared to retake the exam.

Ultimately, even where the GMAT is not required, taking the test can give you an edge over other candidates. It’s one of the best ways to signal that you’re serious about going to business school and serious about advancing your career.