why did governments authorize the creation of joint - stock companies?\no to stop shareholders from buying…

why did governments authorize the creation of joint - stock companies?\no to stop shareholders from buying stocks\no to allow their colonies to make money\no to limit the possibility of risk from trade\no to prevent a positive balance of trade

why did governments authorize the creation of joint - stock companies?\no to stop shareholders from buying stocks\no to allow their colonies to make money\no to limit the possibility of risk from trade\no to prevent a positive balance of trade

Answer

Answer:

C. to limit the possibility of risk from trade

Brief Explanations:

Joint - stock companies spread risk among shareholders. Governments authorized them to reduce trade - related risks for investors and promote economic activities. Other options are incorrect as they go against the nature and purpose of joint - stock companies. For example, they don't stop stock - buying, aren't mainly for colonies to make money, and don't prevent a positive trade balance.