Question

As new discoveries and economic opportunities became available in the Renaissance, the kings and queens of Europe began to invest in chartered companies. Why were monarchs willing to invest in these sometimes risky business ventures?

a.The monarch could control the company's every decision from afar, adding to their power.
b.The monarch could expand his or her territory into new lands without the cost or risk required to set up a colony.
c.The costs of funding and defending a charter were low and therefore worth the risk and capital involved.
d.Most monarchs believed that the companies could serve as their eyes and ears abroad--as spies.

Answer 1

b.The monarch could expand his or her territory into new lands without the cost or risk required to set up a colony.

Charters were business ventures and the cost and maintenance of the settlement is up to the business.

Monarchs investing in a charter allowed them to expand their empire and bring wealth into the country with little investment. The monarch acted as an investor while the company set up a means of making money. If the settlement failed was successful, the monarchy would profit but if it failed the money lost was felt most by the company.