How did joint-stock companies fund colonies?

Answer 1

Joint-stock companies were companies in which a group of people that invest in together. The investors all shared a part of the company's profits and losses. The joint-stock company allows all investors who buy a part of the company to share all profits and losses. It would allow the investor to lose less money than compared to when they were the sole owner of the company.

Answer 2

The growing needs of business cannot be satisfied with sole proprietorship and partnership. There is a need of some other form of organization to produce the goods on a large scale. Moreover the adoption of innovations of new technology is possible only in large unit. Sole proprietorship and Partnership forms of organization are suitable only for small and medium scale enterprises. These limitations of Sole proprietorship and Partnership gave birth to another form of organization known as company.

In simple words, in Joint Stock Company capital is contributed by large number of persons known as shareholders. The liability of these shareholders is limited to the extent of their investment in the company.

Answer 3

By selling shares to investors with a promise to share profits

Answer 4

Some countries could not fund expeditions on their own.

Answer 5

all of the above