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Admission Tests Graduate Management Admission Test Sample Questions:

Question 1

Many companies today are making new product development a central element of their competitive strategy.
Because the potential benefits of successful product innovation are great-prolonged growth, superior financial returns, and strong investor interest-many companies offer employees incentives such as promotions and bonuses for developing new products, incentives not offered for innovations in other areas of the business, firms' priorities can also be shaped by their measurement systems, since these systems can directly measure returns from new products more immediately than they can measure returns from investments in such areas as organizational restructuring or innovations in marketing.
But the organizational culture of such companies can hurt them in the marketplace because a narrow focus on product development can ultimately detract from a firm's performance. For instance, a company's ability to profit from new products can be severely hampered if it has neglected other functions and business processes.
If a company develops a superior new product but is unable to distribute and promote t rapidly, competitors with better distribution systems may copy the product and introduce It into the market before the innovator can profit from its innovation. In contrast, effective distribution, marketing, and accounting systems-that is, strong overall business systems -can act as entry barriers, deterring would-be competitors from entering a particular The passage suggests which of the following about companies' investment in the development of new products?

A. Companies might invest less heavily in the development of new products if company executives felt equally able to measure the results of investments in all areas of business innovation.
B. It is generally more expensive for companies to invest in the development of new products than to invest in such things as organizational restructuring or the development of new marketing practices.
C. While investment in the development of new products can bring greater returns to companies than can investment in other areas of a business, the benefits are usually short-lived.
D. Heavy investment in the development of new products is a less risky business practice than most business leaders believe.
E. Companies are most likely to focus their investment on the development of new products if they perceive competitors to lack strong overall business systems.

Question 2

If y > 1, yz < -1, and -1< xy < 0, which of the following is the correct ordering of x, y, and z?

A. x < z < y
B. x < y < z
C. z < x < y
D. y < z < x
E. z < y < x

Question 3

Originally, the bill for Quon's mea! was $11.88, which included an 8% tax on the cost of the meal. Quon presented a discount coupon for 25% off the cost of his meal.
Quon's final bill was the discounted cost of the meal plus the 8% tax on the discounted cost of the meal. How much was Quon's final bill?

A. $8.91
B. $9.62
C. $8.93
D. $11.63
E. $9.13

Question 4

Jim and Beth are in a ticket line along with 43 other people, and Jim is ahead of Beth in the line. If there are 20 people behind Jim and 30 people ahead of Beth, how many people in the line are between Beth and Jim?

A. 15
B. 7
C. 10
D. 5
E. 13

Question 5

Editorial: For the past two years, our dty has used photo radar to enforce speed limits at several Intersections, automatically photographing cars, measuring their speeds, and mailing tickets to offending drivers. In the second year of the program, the annual number of violations observed by photo radar dropped by 5 percent.
This shows that the program has been effective at reducing speeding on the monitored streets.
The editorial's reasoning is most vulnerable to criticism on which of the following grounds?

A. It conflates the claim that photo radar may Increase the incidence of speeding with the claim that a reduction in speeding has resulted in fewer observed violations.
B. It overlooks the possibility that speeding may have increased on many streets not monitored by photo radar.
C. It confuses a justified conclusion about the program's effectiveness with an unsubstantiated explanation of why the program has been effective.
D. It takes for granted that any other method of enforcing speed limits would be less effective than photo radar.
E. It fails to adequately address the possibility that the annual number of speeding violations in the city may fluctuate at random from year to year.

Solutions: