Which of the following best describes how a joint-stock company worked?

A single wealthy entrepreneur funded an entire voyage and kept all the profits.

A king would give a royal charter to an explorer to claim land for the country.

Many people bought shares in a company, sharing the expenses and any profits.

Merchants hired peasants to make goods in their homes to lower costs.

An investor who bought shares in a company funding a new colony was primarily hoping to...

personally govern the new colony.

receive a license to become a pirate.

To follow new laws passed by their kings that required this business model.

To reduce the financial risk of funding expensive overseas colonies by sharing the cost.

To compete with artisans and guilds by hiring peasants for production.

To create religious communities and missions in the Americas.

It slowed down colonization by creating competition between merchants.

It stopped colonization because most companies failed to make a profit.

It allowed European nations to raise the large amounts of money needed to establish and support expensive overseas colonies.

It limited colonization to only the wealthiest royal families who could afford them.