why were joint - stock companies created?\n- to allow individuals to finance and share the benefits of…

why were joint - stock companies created?\n- to allow individuals to finance and share the benefits of trade\n- to reduce the risk of overseas business\n- to let two or more individuals buy stock in a company\n- to create bigger companies

why were joint - stock companies created?\n- to allow individuals to finance and share the benefits of trade\n- to reduce the risk of overseas business\n- to let two or more individuals buy stock in a company\n- to create bigger companies

Answer

Brief Explanations:

Joint - stock companies were created mainly to allow multiple individuals to pool their resources for financing trade and share the associated risks and benefits. This also helped in reducing the risk of overseas business as the risk was spread among many investors. Buying stock in a company is a result of their existence, not the main reason for creation. Creating bigger companies is also a consequence rather than the fundamental reason.

Answer:

  • A. to allow individuals to finance and share the benefits of trade
  • B. to reduce the risk of overseas business