Which reason explains why joint-stock companies were created to fund british colonial settlements instead of the option suggested in the excerpt

Groups of investors, rather than the state, shared responsibility for the financial risks of the settlement.

well it definitly does because if you are seen as weak you will be seen as unimportant and they will walk all over you and the us is the most powerful military and the largest in the world

hope this

declare war, appoint military officers, sign treaties, make alliances