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Graduate Management Admission Test (GMAT)


The Graduate Management Admission Test (GMAT) is a standardized exam used by graduate business schools to assess the qualifications of applicants for advanced study in business and management. The test measures skills such as analytical writing, quantitative reasoning, verbal reasoning, and integrated reasoning. It’s designed to predict how test takers will perform academically in MBA programs.


The phonetic pronunciation of the keyword Graduate Management Admission Test (GMAT) is:Graduate: /ˈgrajʊət/Management: /ˈmænɪdʒmənt/Admission: /ədˈmɪʃən/Test (GMAT): /test/ (G-M-A-T) /ˌdʒiː ˌem eɪ ˈtiː/

Key Takeaways

  1. Designed for Business School Admission: The GMAT exam is specially designed for admission to graduate management programs such as an MBA. It is used by institutions around the world to assess the qualifications of applicants for advanced study in business and management.
  2. Four sections: The GMAT is divided into four sections: Analytical Writing Assessment, Integrated Reasoning, Quantitative, and Verbal. The intention is to measure the abilities in particular areas that are necessary for academic success in today’s business and management fields.
  3. High scores increase admission chances: A high GMAT score increases the chances of getting admission into a top business school. It plays a crucial role in the MBA application process as business schools place a high importance on it during the admission process.


The Graduate Management Admission Test (GMAT) is a critical aspect in the business and finance sector primarily because it serves as a standardized assessment tool used by top tier business schools worldwide to evaluate potential candidates for their graduate management programs, such as an MBA. Its importance lies in its ability to measure a candidate’s analytical writing, integrated reasoning, quantitative, and verbal skills, providing an objective measure that schools can use to compare applicants. This ensures that incoming students possess the higher-order reasoning skills necessary for academic success in those programs. Furthermore, a high GMAT score can enhance an individual’s career prospects, as employers often consider these scores when hiring.


The Graduate Management Admission Test, commonly known as GMAT, serves as a primary vetting tool used by universities worldwide, particularly business schools, to evaluate the qualifications of applicants for advanced study in business and management. Its purpose is to gauge a potential student’s academic readiness for the rigors of graduate-level coursework. The scores provided by the GMAT are used to predict how well a student might do in a graduate management program, such as an MBA, based on that individual’s critical thinking abilities, analytical writing skills, problem-solving capacities, and aptitude for studying business concepts.Business schools use GMAT scores as part of the admissions process to select the best suited applicants among a pool of potential students. The GMAT is designed not just to test specific subject matter knowledge, but to provide a broad assessment of the test taker’s reasoning, comprehension, and analytical abilities – skills that are crucial for successful navigation through demanding business courses. Therefore, a strong GMAT score can significantly boost an applicant’s chances of securing admission to their desired business schools and can be influential in determining their academic and subsequently, professional trajectories.


1. Corporate Career Shift: For example, an individual working in a tech startup wants to make a career shift into corporate strategy. They decide to pursue an MBA to gain more in-depth knowledge about business management. To get admission into a reputed business school, they take the GMAT. Their high GMAT score allows them to get noticed and admitted to Harvard Business School, which becomes a stepping stone in their career transition.2. Scholarship Opportunities: A chemistry student, dreaming of blending her scientific skills with business expertise, decides to take the GMAT in the hope of obtaining a scholarship for her MBA study. With an excellent GMAT score, she manages to secure a fellowship program at Kellogg School of Management at Northwestern University. Her tuition fee gets fully covered, easing her financial burden and letting her focus purely on her academic and professional growth.3. Entrepreneurial Pursuit: A young entrepreneur decides to build a robust base to succeed in the business field, realizing an MBA would provide the necessary strategic and leadership skills. To get into a top business school, he takes the GMAT test. His business ideas, coupled with a high GMAT score, impresses admission officers, and he gets admission to Stanford MBA program. The skills and networking opportunities he gains during the program help in securing funding for his startup.

Frequently Asked Questions(FAQ)

What is the Graduate Management Admission Test (GMAT)?

The Graduate Management Admission Test (GMAT) is a standardized exam that is used as part of the admissions process for graduate management programs around the world. It is designed to measure critical thinking and reasoning skills, including problem-solving, data analysis, and communication.

Who is the GMAT intended for?

The GMAT is designed for individuals seeking admission into graduate management programs, such as a Master’s in Business Administration (MBA) or a Doctorate of Business Administration (DBA).

What is the format of the GMAT?

The GMAT exam is divided into four sections: Analytical Writing Assessment, Integrated Reasoning, Quantitative Reasoning, and Verbal Reasoning.

How long is the GMAT and how is it scored?

The GMAT lasts approximately 3.5 hours and scores range from 200 to 800. Individual scores are also provided for each of the four sections.

How often can I take the GMAT?

You can take the GMAT once every 16 calendar days, but no more than five times within a 12-month period and no more than eight times in total.

How do I prepare for the GMAT?

There are many ways to prepare for the GMAT, including self-study using GMAT prep books, online courses, tutoring, or GMAT prep classes. The official GMAT website also offers a variety of resources.

How important is the GMAT in business school admissions?

The importance of the GMAT score varies from program to program, but it is generally a crucial factor in the admissions process for competitive business schools.

How can I register for the GMAT?

You can register for the GMAT online via the official GMAT website. You’ll need to create an account and select a testing location and date.

What does the GMAT cost?

The cost to take the GMAT is currently $250, which includes sending your score reports to up to five graduate programs.

: How long is a GMAT score valid?

: Your GMAT score is valid for five years. You can use your score for admission to a graduate management program within this period.

Related Finance Terms

  • Quantitative reasoning section
  • Verbal reasoning section
  • Integrated reasoning section
  • Analytical writing assessment
  • GMAT Score

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