Initially there was confusion among the first English colonists about

Para 1: Initial confusion among first English colonists w.r.t to Purpose, character, trade with Americans, base to protect against Spanish Ships

Para 2: WR enterprise example of early English colonization. WR goal to make money and glory for England. WR and Gilbert example of individual exploit. English colony realized colonization required major investment unable to met through individuals over years. Joint stock companies got formed hence

Para 3: VC most- first and most famous joint stock company. Aristocratic background got shares and high offices as they lent prestige and have access to king's court.Comparison with capitalist mercahnts.

Para 4: Joint stock company seemed modern. King's court controlled and used monopoly which restricted economic opportunity to well to do people who might have used their investment as a way to generate greater wealth. These people do not include aristocratic background type people

Main Purpose: Author provides rise of a Join Stock company right from initial background on how first English colonists had confusion.

WR: Walter Rayleigh
VC: Virginia Company

1. The primary purpose of the passage is to

A. explain Sir Walter Raleigh's historical role in the English colonization of North America
-- WR's historical role is discussed in para 2 but do not form the essence or main purpose of the passage

B. contrast the structure of joint-stock companies with that of modern corporations
-- No where modern corporations are discussed....Join stocks seemed modern does not mean they are compared.

C. portray the hardships experienced by many of the early English colonizers of North America
-- Leadership pursued is discussed in para 2 but is not main purpose of the passage

D. argue that privateering was detrimental to England's political self-interest during the period of North American colonization
-- The passage does not discuss much on whether privateering was detrimental to political self-interest. Even though it is discussed in para 2 and para 1 as against privateering of Spanish Treasury ships but do not form the essence of author's purpose

E. describe the historical context in which joint-stock companies developed during the English colonial enterprise in North America
-- This captures the essence and is the main purpose
This is the answer


2. According to the passage, which of the following was true of English "colonial promoters" (Highlighted) during the period discussed?

"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"

A. They were all unified in support of the objectives of the colonies.
-- It is not true as English colonial promoters were initially puzzled over purpose of their stay and later colonial promoters were in search of glory for himself and for England.

B. They were all glamorous and individualistic people.
-- It is not mentioned that all colonial promoters were glamorous people

C. They all supported piracy against the Spanish.
-- They supported privateering against Spanish treasury ships not against piracy..words play is at work here

D. They all contributed significant personal wealth to their ventures.
-- Few examples such as WR and others do not prove that all contributed significant personal wealth to their ventures

E. They all undertook their ventures primarily to make money.
-- "His primary goal, like that of all colonial promoters, was to make money" so this effectively captures the essence of what the question is asking
This is the answer


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?
"National prestige was a strong motive for the investors, but they also expected to reap a steady income from their shares"

I. Patriotism
-- National Prestige is talked about and hence Patriotism looks good

II. Hope for individual glory
-- It is not true as it was not the purpose of join stock companies. Here people wanted to contribute together to raise enormous sum and provide steady aid.

III. Desire for economic gain
-- Investors expected to reap a steady income from their shares. So there was a desire for economic gain.. Looks good

A. I only
B. III only

C. I and III only
This is the answer

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

"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"

A. wanted military protection from Spanish pirates
-- Nowhere it is mentioned that middle class merchants required protection against Spanish pirates and hence out of scope

B. lacked access to the king and his court
-- Middle class merchants do have most of the money but lacked access to King and court. Only aristocrats have those access and hence were selected.
This is the answer

C. lacked expertise in large-scale economic ventures
-- Expertise is not discussed and hence out of scope

D. had an undue regard for purely formal social status
-- There is no mention of undue regard for purely formal social status...

E. had borrowed considerable amounts of money from them for previous ventures
-- We just know that middle class merchants have lots of money ..no where it is discussed that they had borrrowed considerable amounts of money from them for previous ventures.


5. The passage states that the earliest English colonists in North America generally expected to
"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."

A. return to England after their stay in the colonies
-- Most who embarked expected to return to England and hence is correct
This is the answer

B. become members of an aristocracy in North America
-- The passage does not mention that they wanted to become members of an aristocracy in North America

C. receive strong economic support from the English government
--The passage does not mention any receipt of strong economic support form English support..

D. establish plantations for trade with England
-- Early colonists wanted to establish trade with North Americans not England

E. create self-supporting communities independent of England
-- Early colonists were confused on the purpose and character of their colonies and hence creating self supporting communities independent of England remains out of scope. Infact early English colonization representative wanted grant by English King so independence remains a distant thought.


6. The passage implies which of the following about joint-stock companies?
"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."

A. They were made possible for the first time by the colonization of North America.
-- For the first time individuals led enterprise was possible so it is out of scope

B. They were ineffectual because the investors did not share the same motives.
-- In the early years, few companies prospered. but the passage does not provide logic why they they did not proper. Hence out of scope

C. They were merely formal organizations lacking both money and power.
-- Join Stock companies were formed because it will bring contribution from people who would buy shares. Hence lack of money and power is out of scope as they included aristocrats

D. They were necessary to the prosperity of the English colonial enterprise in North America.
-- It captures the essence as the passage says "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." Hence for the prosperity of English colonial enterprise it required lot of money which was possible through joint stock companies
This is the answer

E. They were created to limit the wealth of capitalist merchants.
-- The intention of the join stock companies was not to limit the wealth of capitalist merchants and hence out of scope.


7. It can be inferred from the passage that joint-stock companies were not entirely modern because

"These joint-stock companies, technically capitalist organizations, seem modern
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"

A. they were not primarily involved in the manufacture of goods
-- It is involved in manufacture of goodsas King awarded to those he favored which were nobility who were part of join stock companies. Hence out

B. they were restricted by the power of the king and the nobility
-- Joint stock companies were not restricted by the power of the king and the nobility. It was well to do people who could not get favored by the King.

C. most of them had monopolistic control of a market or a profit
-- King awarded monopolies of the manufacture of importation of vital products to reward those he favored. It was not well to do people but the members of the gentry and nobility, who were in join stock companies. Hence most of them had monopolistic control of a market or a profit
This is the answer

D. few of them realized the profits their investors expected
-- the reason that few of them realized the profits does not make them modern.Hence out of scope

E. some of them were composed almost entirely of middle-class merchants
-- No where it is mentioned that some of them were composed almost entirely of middle class merchants. Infact join stock companies avoided middle class merchants and favored aristocrats.


8. The author implies that which of the following contributed to the failure of Sir Walter Raleigh's Roanoke colonies?

Para 2: "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"

I. His policy of piracy against the Spanish treasure ships
-- John White, the leader of Raleigh's last colony at Roanoke, believed that the diversions of privateering helped to kill the colony and hence his policy of piracy led to demise. Option I stays in

II. His lack of strong financial backing
-- This remains true as colonization required massive investment that individuals cannot continue for long. Also his goal was to make money which means he does not have strong financial backing

III. His lack of knowledge about the environment in North America
-- "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".Hence we can say that he has 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
This is the answer