Initially there was confusion among the first English colonists about the purpose and character of their colonies in North America. Most who embarked for the colonic expected to return to England. Furthermore the colonizers were often unclear as to whether they intended primarily to establish centers for trade with the Native Americans or to create bases for privateering against Spanish treasure ships. Sir Walter Raleigh's enterprise is representative of early English colonization in North America. He held the patent (proprietary right granted by the English king) for Virginia, which at the time meant the entire Eastern coast of North America, and the Roanoke colonies were his ventures. His primary goal, like that of all colonial promoters , was to make money, but he was also in search of glory for himself and for England. Individual promoters such as Raleigh and Sir Humphrey Gilbert evoke the stereotypical image of the swashbuckling Elizabethan who contributed to England's prestige by individual exploits of daring and skill, but this type of leadership was not characteristic of the successful English colony. Indeed, John White, the leader of Raleigh's last colony at Roanoke, believed that the diversions of privateering helped to kill the colony. 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, organization in which people bought shares, were formed to provide this steady aid. The Virginia Company of London was the first and most famous of these joint-stock companies for colonization. National prestige was a strong motive for the investors, but they also expected to reap a steady income from their shares. In the early years, however, few prospered. The Virginia Company included many members of the gentry and the nobility who were often given shares and high offices simply because of their aristocratic backgrounds. 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. These joint-stock companies, technically capitalist organizations, seem modern; nevertheless. Care must be taken not to overemphasize the modernity of economic venture in England at this time. 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. This stratagem resulted in a constriction of economic opportunity for those well-to-do people (not members of the gentry or nobility themselves) who might have used investment as their way to greater wealth. 1 1. The primary purpose of the passage is to A. explain Sir Walter Raleigh's historical role in the English colonization of North America B. contrast the structure of joint-stock companies with that of modern corporations C. portray the hardships experienced by many of the early English colonizers of North America D. argue that privateering was detrimental to England's political self-interest during the period of North American colonization E. describe the historical context in which joint-stock companies developed during the English colonial enterprise in North America 2 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 objec¬tives of the colonies. B. They were all glamorous and individualistic people. C. They all supported piracy against the Spanish. D. They all contributed significant personal wealth to their ventures. E. They all undertook their ventures primarily to make money. 3 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 II. Hope for individual glory III. Desire for economic gain A. I only B. III only C. I and III only D. II and III only E. I, II, and III 4 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 B. lacked access to the king and his court C. lacked expertise in large-scale economic ventures D. had an undue regard for purely formal social status E. had borrowed considerable amounts of money from them for previous ventures 5 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 B. become members of an aristocracy in North America C. receive strong economic support from the English government D. establish plantations for trade with England E. create self-supporting communities independent of England 6 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. B. They were ineffectual because the investors did not share the same motives. C. They were merely formal organizations lacking both money and power. D. They were necessary to the prosperity of the English colonial enterprise in North America. E. They were created to limit the wealth of capi¬talist merchants. 7 7. It can be inferred from the passage that joint-stock companies were not entirely modern because A. they were not primarily involved in the manu¬facture of goods B. they were restricted by the power of the king and the nobility C. most of them had monopolistic control of a market or a profit D. few of them realized the profits their investors expected E. some of them were composed almost entirely of middle-class merchants 8 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 II. His lack of strong financial backing III. His lack of knowledge about the environment in North America A. I only B. III only C. I and II only D. I and III only E. I, II, and III GMAT Club's Reading Comprehension (RC) Quiz-II 2023 05 Days | 10 Passages | Win Prizes | Get Better at GMAT Passage # 07 | Date: 04 September 2023 Click here for more details and master thread

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Initially there was confusion among the first English colonists about

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Sajjad1994

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06 Sep 2023, 12:56

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Ok, it seems that everyone else--excluding me--got this right but I still don't understand how people are connecting "colonization" or "steady-aid" to "prosperity"?
I can't see how both are the same thing? If you are saying that colonization leads to prosperity then that's outside info that isn't actually mentioned in the passage?

Your comment suggest that you didn't had the proper idea where to go in the passage to read the text and answer the question and that creates a lot of mess during the exam. While reading the passage you must be careful about the events happening and you must know what part of the passage you need to re read to answer the question.

This question asks about the joint-stock companies and i know where to go in the passage.

The last sentence of the second paragraph and first half of the third paragraph is the part you need to reread to answer this question.

"Joint-stock companies, organization in which people bought shares, were formed to provide this steady aid.

The Virginia Company of London was the first and most famous of these joint-stock companies for colonization. National prestige was a strong motive for the investors, but they also expected to reap a steady income from their shares. In the early years, however, few prospered. The Virginia Company included many members of the gentry and the nobility who were often given shares and high offices simply because of their aristocratic backgrounds."

Now go one by one.

A. They were made possible for the first time by the colonization of North America.
While I read this option I thought this could be the answer BUT yes it "COULD BE". I still have 4 options left and there could be some better option than A. Continue.

B. They were ineffectual because the investors did not share the same motives.
This is exact opposite to what the passage said.

C. They were merely formal organizations lacking both money and power.
They were not formal organizations, this is an example of half right and half wrong answer choices.

D. They were necessary to the prosperity of the English colonial enterprise in North America.
Prosperity means here is profitable. The last sentence of the second paragraph suggest this. by knowing that I was sure to select this option instead of A.

E. They were created to limit the wealth of capitalist merchants.
Out of scope.

I hope it helps

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Sajjad1994

I have one doubt regarding Question 6, I agree that the need for funding was necessary for colonies, but it is not mentioned anywhere that joint-stock companies where necessary. Joint-stock company is a one particular way to achieve funding and we can have many other ways to achieve funding apart from joint-stock companies.

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