COLONIALISM AND IMPERIALISM
COLONIALISM AND ITS ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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allow investors to take fewer risks
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make certain families very wealthy
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serve as a manufacturing center
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charge interest on money loaned out to merchants
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Detailed explanation-1: -In a joint-stock venture, stock was sold to high net-worth investors who provided capital and had limited risk. These companies had proven profitable in the past with trading ventures. The risk was small, and the returns were fairly quick.
Detailed explanation-2: -Joint-stock companies were created to finance endeavors that were too expensive for an individual or even a government to fund. The owners of a joint-stock company expected to share in its profits. Today, U.S. companies are not organized as joint-stock companies.
Detailed explanation-3: -Benefits of Joint-Stock Companies Joint-stock companies allow a solid business to form and thrive with many working together. Each shareholder invests in the company and is able to benefit from the business. Every shareholder owns a piece of the company, up to the amount that they’ve invested.
Detailed explanation-4: -A Joint Stock Company is an incorporated association of two or more persons having a separate legal existence with perpetual existence and common seal. Its capital is divided into shares which are freely transferable and the owners of these shares have limited liability. It is an artificial entity created by law.