Admission Tests GMAT Online Practice Questions and Exam Preparation

Admission Tests GMAT Online Questions & Answers

• Question 101:

  A certain investment of $2.000 earns interest at a fixed annual rate, with interest paid monthly to the investor. If the monthly interest payment is $10, what is the annual interest rate?

  A. 3.6%
  B. 4.8%
  C. 5%
  D. 5.5%
  E. 6%
  E. 6%

• Question 102:

  

  A. Statement (1) ALONE is sufficient, but statement (2) atone is not sufficient.
  B. Statement (2) ALONE is sufficient, but statement (1) atone is not sufficient
  C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
  D. EACH statement ALONE is sufficient.
  E. Statements (1) and (2) TOGETHER are NOT sufficient.
  D. EACH statement ALONE is sufficient.

• Question 103:

  

  A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
  B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
  C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
  D. EACH statement ALONE is sufficient
  E. Statements (1) and (2) TOGETHER are NOT sufficient.
  C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

• Question 104:

  It can most reasonably be inferred from the passage that multinational companies

  A. are more likely to be financially successful in emerging nations if they aty themselves with local businesses that are using environmental sustainability Initiatives to drive growth
  B. are less prone to the problems associated with the halo effect than are companies based only in one nation.
  C. are increasingly likely to buy out emerging-nation companies that have successfully developed and Implemented environmental sustainability initiatives
  D. are usually able to implement large-scale environmental sustainability Initiatives only after they have achieved a certain level of profitability.
  E. tend to develop environmental sustainability initiatives that differ significantly from those that have been successfully and more easily implemented by smaller companies In the emerging world
  E. tend to develop environmental sustainability initiatives that differ significantly from those that have been successfully and more easily implemented by smaller companies In the emerging world

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  Explanation/Reference:

  Many policymakers adopt a macro approach to environmental problems in emerging markets (countries experiencing rapid economic growth): discussing ambitious regulations in global faums and looking to giant multinational companies and non- governmental organizations (NGOs) for insight. But examining what successful companies in these countries are already doing to make growth more environmentally sustainable may make more sense. One study identifies several such firms that are turning eco-consciousness into a source of competitive advantage. The most salient quality of these highly profitable companies Is that they turn limitations (of resources, labor, and Infrastructure) into opportunities. An Indian cement company suffering water shortages developed the world's most water-efficient cement-making method, using air-cooling rather than water cooling. A Philippines utility reduced its water loss through wastage and illegal tapping from 63 percent (1997) to 12 percent (2010) by making water more affordable for lower-Income consumers. A Chinese company makes air conditioners powered with buildings' waste heat, reducing strain on the electric grid. The companies also seek to shape their business environment to support sustainable objectives. Some lobby regulators: a Brazilian organic-sugar producer works with Brazil's government to establish an organic certification system. Some form partnerships: Kenya's Equity Bank allies with international groups to reduce its risks when lending to smallholders or single-family farms; a Brazilian cosmetics company works with suppliers to produce sustainable packaging. Some firms also work to reach and educate lower-income consumers, sacrificing short-term profits to create future markets: a Chilean forestry company organizes local carpenters into networks and connects them to low-income customers. One could quibble with the study. Switzerland's Phil Rosenzweig has argued that management writers are prone to a halo effect: they treat a company's temporary success as proof that It has discovered some eternal principle of good management. That some successful companies have embraced environmental sustainability does not prove that It makes companies successful. Some firms, having prospered, can afford splurging on green Initiatives; some pursue eco-Initiatives for public relations purposes. Nonetheless, the study Is thought-provoking. Critics argue that environmentalism Is a rich- world luxury, but such fears are overblown. When natural resources are scarce and consumers are cash-strapped, sustainability can be a lucrative business strategy.

• Question 105:

  Coal Exporter: Environmentalists oppose allowing coal trains to pass a national park because they believe coal dust blowing off the trains could cause significant environmental damage. This belief is mistaken. Exporters have Incentives to prevent a low In the total weight of coal cargo during transport Consequently, they spray it with an environmentally safe sealant proven to reduce coal dust loss.

  Which of the following most accurately describes how the two sentences in boldface function in the coal exporter's reasoning?

  A. The first sentence functions as support for the only conclusion of the reasoning; the second sentence states that conclusion.
  B. The first sentence functions as support for the only conclusion of the reasoning; the second sentence describes a supposed result of the circumstance that the first sentence describes.
  C. The first sentence functions as support for an intermediate conclusion; the second sentence functions as support for the assertion made by the first sentence.
  D. The first sentence states an intermediate conclusion; the second sentence states the main conclusion of the reasoning.
  E. The first sentence describes a situation that the reasoning seeks to causally explain; the second sentence provides a possible explanation.
  B. The first sentence functions as support for the only conclusion of the reasoning; the second sentence describes a supposed result of the circumstance that the first sentence describes.

• Question 106:

  

  A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
  B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
  C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
  D. EACH statement ALONE is sufficient.
  E. Statements (1) and (2) TOGETHER are NOT sufficient.
  E. Statements (1) and (2) TOGETHER are NOT sufficient.

• Question 107:

  Because of the positive correlation across animal species between body size and home range size, researchers suspected that body size of female mallards (a species of duck) may influence their home range size. The researchers also reasoned that younger females may be forced into less suitable habitats by older females competing with them for optimal areas, with the younger females compensating by having larger home ranges. However, their research supported neither suspicion. The failure to detect variation of range size according to body size may be due to other, undetermined mallard attributes (for example, body condition) that may have been a significant factor affecting home range size. The fact that most yearling females can breed may help to explain why the expected age effect was not confirmed, since home range size may be affected by breeding capability.

  The researchers did find, however, that home range size of females was Inversely related to the percentage of the study area composed of seasonal or semipermanent wetlands. This may have been because of reduced competition for breeding space within the species when more of the wetlands were present. They also found home range size to decrease somewhat as the percentage of wood-shrub habitat increased, suggesting that reduction in visual contact among mallard pairs may reduce interaction and thus reduce competition among breeding pairs.

  The author's purpose in making the statement that most yearling female mallards are able to breed is most likely in order to

  A. explain the lack of corroboration from the study for the prediction that younger females may have larger home ranges than older females
  B. help confirm that home range size is affected by breeding ability
  C. support the point that younger females do not tend to have larger home ranges than older females
  D. explain a finding that younger females tend to have smaller home ranges than older females
  E. help explain why yearling female mallards apparently have home ranges of the same size as those of older female mallards
  A. explain the lack of corroboration from the study for the prediction that younger females may have larger home ranges than older females

• Question 108:

  HOTSPOT

  Suppose that m and n are two positive integers such that m< n, their least common multiple is 294, and their greatest common divisor is 7. In the table, select a value for m and a value for n that are jointly consistent with the given information. Make only two selections, one in each column.

  Hot Area:

  

  

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  Explanation/Reference:

• Question 109:

  Sorenson and Audia would most likely agree with which of the following statements about the intrinsic advantages mentioned in the highlighted text?

  A. Geographic concentration of production is, in many cases, maintained I* the economic benefits provided by these advantages.
  B. The expectation that these advantages should lead to lower failure rates is supported by organizational ecology studies.
  C. These advantages are insufficient as an explanation for geographic concentration of production.
  D. These advantages are often related not to a particular location but to the colocation of structurally equivalent organizations Itself.
  E. The benefits of these advantages are outweighed by intense competition from organizations outside local population boundaries.
  C. These advantages are insufficient as an explanation for geographic concentration of production.

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  Explanation/Reference:

  Organizations that produce similar goods tend to concentrate in the same geographic area (geographic concentration of production). Economic explanations of such industrial agglomeration explicitly emphasize better performance, and implicitly emphasize lower failure rates, as the key processes contributing to this geographic concentration. Sometimes Industries benefit economically from situating themselves in particular locations that offer intrinsic advantages such as access to scarce raw materials or proximity to consumers. In other cases, regardless of the particular location, the colocation of structurally equivalent organizations--those that operate in the same markets--may itself yield advantages such as common labor markets and knowledge spillovers. Sorenson and Audia point out that these explanations Ignore the fact that structurally equivalent organizations also compete with one another for vital resources, and colocation would be expected to increase such competition. Organizational ecology studies support this expectation by showing that organizations apparently compete more intensely within local population boundaries. Sorenson and Audia propose instead that what maintains geographic concentration is entrepreneurial opportunity, which leads to higher founding rates. Dense local concentrations of structurally equivalent organizations increase the pool of potential entrepreneurs in a region. Beginning entrepreneurs need exposure to existing organizations in the industry to acquire knowledge of the business, ties to scarce resources, and self-confidence. The existing geographic concentration of production constrains access to these resources, so that new founding's tend to reinforce geographic concentration.

• Question 110:

  HOTSPOT

  At a carnival game, a winning player spins a wheel that always lands on either Prize 1 or Prize 2 to determine which of the two prizes he or she wins. The probability that the prize wheel indicates Prize 2 Is double the probability that It indicates Prize 1. If a player does not want the prize that the prize wheel first indicates, then he or she may spin the wheel again. In such cases, the player must accept whichever prize the prize wheel indicates on the second spin.

  Select for Prize I the number nearest to the probability that a winning player who wants Prize 1 will receive Prize 1 after one or two spins of the prize wheel, and select for Prize ^the number nearest to the probability that a winning player who wants Prize 2 will receive Prize 2 after one or two spins of the prize wheel. Make only two selections, one in each column.

  Hot Area:

  

  

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  Explanation/Reference: