1. The primary purpose of the passage is to
P1: Initial English Colonists were confused about the objective of Colonies in North America.
P2: Loss of Sir Walter Raleigh's colonies due to privateering. Realization that the colonization will require significant funding support .
P3: Inception of the first Joint Stock Companies- It's funding members: Colonial Merchants, Major Control:Aristocrats
P4: King favors the decision by aristocrats and this leads to resentment among Capital Merchants
A. explain Sir Walter Raleigh's historical role in the English colonization of North America ~ Sir Walter Raleigh role is discussed to only highlight why his personal ambition resulted in loss of the Roanoke colonies.
B. contrast the structure of joint-stock companies with that of modern corporations ~ The structure of the modern corporation is not mentioned in the passage.
C. portray the hardships experienced by many of the early English colonizers of North America ~ No hardships as such is mentioned in the passage.
D. argue that privateering was detrimental to England's political self-interest during the period of North American colonization ~ Although it is true that England lost the colonies earlier due to privateering. But the main reason is the lack of significant fund and resources.
E. describe the historical context in which joint-stock companies developed during the English colonial enterprise in North America ~ Correct, author mentions that initial loss of Roanoke colonies made British realize that Colonization will require significant funding which can be provided by Joint Stock Companies. Later how these companies are formed, their members, funding, and mode of operation are discussed.
2. According to the passage, which of the following was true of English "colonial promoters" (Highlighted) during the period discussed?
A. They were all unified in support of the objectives of the colonies. ~ Their objective initially was not clear, refer to the line "Initially there was confusion among the first English colonists about the purpose and character of their colonies in North America"
B. They were all glamorous and individualistic people. ~ It is characteristics of some (Raleigh and Sir Humphrey Gilbert), We cannot infer that all have such characteristics.
C. They all supported piracy against the Spanish. ~ This view is not supported by John white "John White, the leader of Raleigh's last colony at Roanoke, believed that the diversions of privateering helped to kill the colony."
D. They all contributed significant personal wealth to their ventures. ~ Their contribution of wealth to the ventures is not mentioned.
E. They all undertook their ventures primarily to make money. ~ Correct, refer to the line "His primary goal, like that of all colonial promoters, was to make money,"
3. According to the passage, investors in joint-stock companies such as the Virginia Company of London were motivated by which of the following factors?
I. Patriotism ~ Correct refer to the line "National prestige was a strong motive for the investors, but they also expected to reap a steady income from their shares.
II. Hope for individual glory ~ This is the objective of the colonist
III. Desire for economic gain ~ Correct refer to the line "National prestige was a strong motive for the investors, but they also expected to reap a steady income from their shares.
A. I only
B. III only
C. I and III only
D. II and III only
E. I, II, and III
4. According to the passage one reason members of the nobility gained influence in joint-stock companies was that middle-class merchants
A. wanted military protection from Spanish pirates ~ Not mentioned.
B. lacked access to the king and his court ~ Correct, refer to the line "Unlike the capitalist merchants, who provided most of the money, the aristocrats were selected because they would lend prestige to the venture and because they alone had access to those members of the king's court who actually issued patents on territory and controlled colonial policies."
C. lacked expertise in large-scale economic ventures ~ Not mentioned.
D. had an undue regard for purely formal social status ~ Not mentioned.
E. had borrowed considerable amounts of money from them for previous ventures ~ Not mentioned.
5. The passage states that the earliest English colonists in North America generally expected to
A. return to England after their stay in the colonies ~ Correct, refer to the line "Most who embarked for the colonic expected to return to England."
B. become members of an aristocracy in North America ~ Not mentioned.
C. receive strong economic support from the English government ~ Initially, the colonist did not get any strong economic support.
D. establish plantations for trade with England ~ Not mentioned.
E. create self-supporting communities independent of England ~ Not mentioned.
6. The passage implies which of the following about joint-stock companies?
A. They were made possible for the first time by the colonization of North America. ~ Yes, but they are made after the england lost the initial Roanoke colonial control due to privateering.
B. They were ineffectual because the investors did not share the same motives. ~ Investor share two motives which are national prestige and return on their investments. They are not divided on the motives.
C. They were merely formal organizations lacking both money and power. ~ They are backed by the money from the capital merchants and given power by the king.
D. They were necessary to the prosperity of the English colonial enterprise in North America. ~ Correct, refer to the line "It soon became clear to the English that colonization required such massive initial investment that a small Troup led by an individual did not have sufficient resources, especially when the colonies required infusions of funds over several years." Joint stock companies are formed to mobilize funds requirement for several years, for the colonization.
E. They were created to limit the wealth of capitalist merchants. ~Although, Capitalist merchant are not able to generate wealth from these companies,this is not the reason for which the joint-stock companies are set up.
7. It can be inferred from the passage that joint-stock companies were not entirely modern because
Refer to the line "Unlike the capitalist merchants, who provided most of the money, the aristocrats were selected because they would lend prestige to the venture and because they alone had access to those members of the king's court who actually issued patents on territory and controlled colonial policies."
A. they were not primarily involved in the manufacture of goods ~ This cannot be inferred refer to the line "The king's court controlled the economy because the king used monopolies of the manufacture or importation of vital products to reward those he favored."
B. they were restricted by the power of the king and the nobility ~ Correct, It is due to this those capitalist merchant who provided most of the money cannot take decisions and ultimately not able to generate wealth from their investments.
C. most of them had monopolistic control of a market or a profit ~ It cannot be determined that they have a monopolistic control of a market.
D. few of them realized the profits their investors expected ~ This is already mentioned in the passage Refer to the line "In the early years, however, few prospered. "
E. some of them were composed almost entirely of middle-class merchants ~ Those companies consists of aristocrats, only funding was done by merchants.
8. The author implies that which of the following contributed to the failure of Sir Walter Raleigh's Roanoke colonies?
I. His policy of piracy against the Spanish treasure ships ~ Correct, Refer to the line "Indeed, John White, the leader of Raleigh's last colony at Roanoke, believed that the diversions of privateering helped to kill the colony.".
II. His lack of strong financial backing ~ Correct, Refer to the line "Troup led by an individual did not have sufficient resources, especially when the colonies required infusions of funds over several years."
III. His lack of knowledge about the environment in North America ~ Not mentioned.
A. I only
B. III only
C. I and II only
D. I and III only
E. I, II, and III