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SAT® Subject Test in World History

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Joint-Stock Companies & Capitalism

SATWH-XKVYOW

Which of these BEST describes the relationship between joint-stock companies and capitalism in the 1500-1775 period?

A

The government heavily regulates joint-stock companies, providing extra national capital for growing trade markets.

B

Individuals invest private capital with the main goal of establishing a favorable balance of trade for their home countries’ overall economies.

C

Private investors combine their capital for the common purpose of business ventures such as colonial establishment.

D

Joint-stock companies can lead to higher rates of inflation which capitalism helps to suppress.

E

Capitalism did not foster development of joint-stock companies in the 1500-1775 period.