Colonial America Quiz ch 2

What physical hardships did the colonists face?

• Extreme weather conditions, lack of food, and diseases.

• Lack of entertainment, overpopulation, and traffic congestion.

• High taxes, political instability, and lack of education.

• Overabundance of resources, too much leisure time, and frequent celebrations.

What did investors form to pool their money to cover the costs of colonization?

• Banks

• Joint-stock companies

• Government bonds

• Private funds

How did many investors contribute to joint-stock companies?

• By donating money

• By buying "shares of stock"

• By providing labor

• By offering loans

What happened to the profits if there were any in joint-stock companies?

• They were reinvested in the company

• They were given to the government

• They were split among the investors

• They were used to buy more land

What are joint-stock companies?

• Corporations where groups of Englishmen pooled money and allowed others to buy shares of stock.

• Businesses owned by a single individual.

• Government-owned enterprises.

• Non-profit organizations.

What happens in joint-stock companies if the business fails?

• The amount invested is lost.

• The government compensates the investors.

• The investors receive a fixed return.

• The business is taken over by the state.

How are profits distributed in successful joint-stock companies?

• Equally among all investors.

• According to the number of shares owned.

• Based on the initial investment amount.

• Donated to charity.

What are joint-stock companies considered as in relation to modern corporations?

• Forerunners of modern corporations.

• Competitors of modern corporations.

• Subdivisions of modern corporations.

• Replacements for modern corporations.

Who granted a charter to each joint-stock-company?

• The Parliament

• The King

• The Governor

• The President

What did a charter contain?

• Rules for trade

• Rules for taxation

• Rules that governed where a colony was located and how it would be administered

• Rules for military organization