Question

In the North American colonies, what was a charter company?
A. a group of colonists looking for gold that would then be divided up among those who agreed to settle in the Americas
B. a company formed by shareholders for the purpose of trade, exploration, and colonization
C. a company formed to assist early colonies that were struggling, upon agreement that the colonists would share a higher amount of wealth with England
D. a company that established coastal ports in order to sell goods to early colonists

Answer 1

The answer is B because charter companies were formed by shareholders in order to advance trade, exploration, and colonization. 

Answer 2

Answer:

B is the correct option.

Explanation:

A Chartered company is an association of Shareholders who were granted the Royal Charter to trade, Explore and colonize. In North American Context, the first charter colonies were Connecticut, Massachusetts and Rhode Island. All these colonies were formed when the British king granted Charter to establish and govern these colonies. They were all located in New England. The Charter colonies were generally self-governed and the charter was granted to colonists instead of the proprietors. A colony of Rhode Island is a good example of a charter colony. The charter for Rhode Island was granted to Roger Williams in 1663 and all the individuals were given religious freedom.