4.5 & 4.6 Quiz Flashcards
Capital
Material wealth available to produce more wealth
(Think of capitalism)
Capital changed hands from
Entrepreneurs to laborers
Capital put laborers in a better position to becomeโฆ
Consumers & investors
Lending money at high rates of interest
Became common place, despite restrictions from the church
High rate of inflation, rise in prices
Price revolution
Investing capital
Profits and risks of exploration and trading ventures
Limited liability
investor is NOT responsible for a companyโs debts/ other liabilities beyond the amount of an investment
Makes investing safer
Who developed joint stock companies?
Dutch, English, & French
Two joint-stock companies
British East India company
Dutch East India company
Spain and Portugal
Did investing through grants to certain explorers
Joint stock companies allowed
Continued exploration
To develop resources
with limited risk to investors
Highest standard of living in Europe
Dutch
Diamonds, linen, pottery, tulip bulbs
France & Englandโฆ
Fell victim to speculative financial schemes
End of songhai
Morocco capture riches, used firearms
Spanish and Portuguese took territory
Spanish government monopoly
Tobacco 1 third of total revenues