Final answer:
King James I granted a charter to the Virginia Company to find gold and spread Christianity in the New World, and to enable collective investment into the costly venture of colonial establishment. This led to the founding of Jamestown, the first permanent English colony in North America.
Step-by-step explanation:
King James I granted a charter to the Virginia Company in 1606 to establish colonies in the New World for various reasons. First, there was the economic motivation of finding gold and other resources that could generate wealth for England, following the example of other European powers like Spain which were profiting from their colonies. Additionally, the charter aimed at the propagation of the Christian religion among the indigenous peoples, introducing them to European forms of governance and society.
The charter granted land to two branches of the Virginia Company; the London branch to establish a colony near the Chesapeake Bay, and the Plymouth branch in the New England area. The company was a joint-stock company, an early form of today's corporations, which allowed for collective investment and management of the high costs associated with establishing oversea colonies.
The founding of Jamestown, despite initial struggles, marked the establishment of the first permanent English colony in North America, setting the stage for future colonial expansion and shaping the dynamics of European powers in the New World.