What happened to the Virginia Company once Jamestown was settled?

What happened to the Virginia Company once Jamestown was settled?

A. It became wealthy and powerful.

B. The governors disbanded it.

C. The Queen bought it.

D. It went bankrupt.

Answer. D. It went bankrupt.

The Virginia Company which was founded on 1607 was the sponsorship company that went into financial crisis because of the problems that the Jamestown colony in 1607 faced from the beginning of the settlement to its maturity. The social environment was problematic with food production, contagious diseases, tensions with Natives and the weak elected leaders for the village. In spite of the growth in settlement and amassing of goods, the Virginia Company failed to ensure that these settlements would type into profits because all their efforts in Jamestown yielded no returns. Even though the organization was very well prepared to maintain and support the colony, the swarm of expenses invested in the business contracted its resources. In 1624, during several years with poor financial performance and lack of management, the Virginia Company was dissolved, and its charter was taken by the King James I. In this context, Jamestown became a royal colony under direct English Crown control, thus bringing an end of the period of the Virginia Company that had been centred on establishing the colony.