What To Know About the GMAT and GRE

Standardized tests have historically played a key role in graduate business school admissions. Originally, these tests — the GMAT and the GRE — were created to assess whether students were academically prepared for advanced study. The GMAT was developed in 1953 by business schools to measure skills deemed necessary for business success, including verbal, mathematical and analytical abilities.

The GRE, a more general graduate school exam, was traditionally used for non-business programs but has become increasingly accepted by MBA programs over the years.

At Rice Business, we use scores on these tests as part of a holistic review process. A strong score on either test can reinforce an applicant’s academic readiness — especially for the rigorous quantitative coursework in an MBA program. Conversely, if an applicant’s GPA is lower, a solid test score can help strengthen their case for admission.

Below are some of the key differences between the GMAT and the GRE, along with insights from Coni Zingarelli, our executive director of recruiting and admissions, on the role these tests play in being admitted to a Rice MBA program.

What’s the difference between the GMAT and the GRE?

The GMAT was specifically designed for business school admissions. The newest version, called the GMAT Focus Edition, launched in 2023 and became the sole version of the exam in 2024. This version places even more emphasis on relevant business skills, with three sections:

• Quantitative reasoning (problem-solving)
• Verbal reasoning (critical reasoning and reading comprehension)
• Data insights (data literacy)

The GRE was established in 1936 by the Carnegie Foundation for the Advancement of Teaching. Since 1948, the GRE has been part of the Educational Testing Service. The earliest versions of the GRE tested only for verbal and quantitative abilities and since, the GRE general test has evolved to include a verbal section, a quantitative reasoning section and an analytical writing section. 

Does Rice Business prefer the GMAT over the GRE?

Rice Business accepts scores from both tests.

“Since the GMAT was designed specifically for business schools,” Coni Zingarelli explains, “it aligns more closely with the skills necessary for success in an MBA program. That said, we encourage applicants to choose the test they are most comfortable with.”

Do GMAT and GRE test scores accurately predict MBA success or reflect a person’s potential in business?

Not necessarily. 

“I’ve observed applicants with average test scores excel because they were highly motivated and engaged in their program,” Zingarelli says.  “And I’ve observed applicants with high test scores and undergraduate GPAs struggle in an MBA program because they weren’t dedicated to the program’s rigorous demands.” Ultimately, success in an MBA program depends on a combination of factors, including academic readiness, work ethic, time management and the ability to collaborate with peers.

While test scores can provide insight into an applicant’s analytical and problem-solving abilities, tests do not capture qualities like leadership, adaptability and interpersonal skills — traits that are equally critical for success in business school and beyond. 

Our admissions committee considers test scores alongside academic history, work experience, essays and interviews to get a more complete picture of an applicant’s potential. When it comes to excelling in an MBA program, strong communication skills, resilience and the ability to navigate complex business challenges often prove just as important as quantitative savvy.

Can applicants get a test waiver?

We technically require standardized test scores for all MBA programs, but waivers are available in certain cases. The Professional, Executive, Online and Hybrid MBA programs are more likely to grant waivers since applicants typically have extensive work experience. For the Full-Time MBA, waivers are available but not guaranteed.

Even if an applicant qualifies for a waiver, taking the GMAT or GRE can be beneficial — especially for those seeking merit-based scholarships.

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Are test scores helpful beyond the admissions process?

Yes. According to Zingarelli, some employers, especially in consulting and investment banking, are going back to wanting to see GMAT or GRE scores as part of their hiring process. “A strong score can serve as another data point that signals analytical ability and problem-solving skills. Having a solid test score can give candidates an extra edge in a competitive job market.”

Additionally, many business schools, including Rice, award scholarships based on merit. A strong GMAT or GRE score can improve an applicant’s chances of securing financial aid.

How should applicants prepare for the GMAT or GRE?

Studying for a standardized test is more than just a step in the application process — it can also help applicants transition back into an academic mindset.

“Studying for these tests puts you back in the mindset of being a student,” Zingarelli says. “It forces you to manage your time, work through complex problems and engage with material in a structured way. Many students tell us that once they start the MBA program, they’re grateful they took the test because it helped them transition back into academic life and feel more prepared for the rigorous coursework ahead.”

Here are some study tips for test-takers:

• Start early. Give yourself at least two to three months to prepare.
• Take practice tests. Simulate test conditions to build endurance.
• Focus on weak areas. If quant is a struggle, spend extra time strengthening math skills.
• Consider prep courses. A structured study plan can improve performance.

Final thoughts

Standardized tests are just one part of the MBA admissions process, but they provide valuable insight into an applicant’s readiness for business school. While Rice Business prefers the GMAT, applicants should take the test that best reflects their skills and strengths.

Beyond admissions, a strong test score can improve scholarship opportunities and even provide a long-term advantage in competitive industries. Whether applicants choose the GMAT or GRE, preparing for the test can help ease the transition back into academic life and set the stage for success in an MBA program.

Remember that the effort you put in now can pay off later.