Roots of a Nation: A Chesapeake Journey
Topic: The Roots of Corporate America Submitted by Mark Lowrie
Grade Level: 7 th grade and could be taught in 8 th grade US history
Duration: Two, 50 minute class periods or one 90 minute class period
Focus Question: How and why was the Jamestown Colony financed as a joint stock company?
Alignment: 4.A Economics- Scarcity and economic decision making, 4. Examine how specialization, interdependence and trade affected the production of goods and services in early world history c. Identify factors that have influenced economic development in various regions such as corporations
RI.7.1 Cite several pieces of textual evidence to support analysis of what the text says explicitly as well as inferences drawn from the text.
Lesson Objective: Students will be able to describe how and why the Virginia Company financed Jamestown Colony.
Vocabulary: company, colony, indentured servant, Joint Stock Company, English pound, shilling, entrepreneur, finance, private company, limited liability
Materials: Excerpt from “Love and hate in Jamestown” by David price, pages 3 and 4
Richard Hakluyt’s 1584 “Discourse of Western Planting”
Imitation English pounds, computer lab or laptops
Instructional Procedures:
Day One: Warm- Up: Have students list companies that they know are owned by people in their community. Share out with class. The teacher then defines a private company.
1.
Why might a person or group of people want to own their own company?
2.
What do you think are some of the disadvantages of owning a private company?

Class discusses possible answers to these questions.
Set the historic scene: England, 1605. The King of England has granted you permission to set up a colony in the Chesapeake Bay region under the condition that you do not negatively interfere with the lives with the native peoples. You think there is a possibility of finding gold, silver and other riches.
Students are broken into groups of 3 or 4. Each group is responsible for creating a list of people (specific trades or skill sets), goods and supplies that they think would be necessary in starting a new colony. Students need to plan for at least a year before the colony would be re-supplied.
Pass out copies of Haykluyt’s “Discourse of Western Planting.” Have students compare their lists to what he thought was needed for the colony. Have students complete the worksheet.
Have the groups estimate the cost of goods/labor for 1 year for the colony of 105 people.
Students should also research a present day equivalent of one of the goods or labor taken on the original journey. Have each group present their results.
1.
Why would estimating cost be important?
2.
What could some consequences of either over or under estimation of costs be for the people of the Jamestown Colony or the Virginia Company?
Teacher summarizes: North American colonies were…
A.
A very complex venture with the need for many goods, supplies and a wide variety of skilled and unskilled labor.
B.
Very expensive and nearly impossible for an individual to finance by themselves.

Name______________________________ Date__________________________
It is England, 1605 and the King of England has granted you permission to set up a colony in company to colonize the Chesapeake Bay region under the condition that you do not negatively affect the lives of the native peoples living there. You think there is a possibility of finding gold, silver and other riches.
Directions: Create a list of tradesmen with a particular skills set, goods and supplies that would be necessary to start a colony. You must plan for at least a year before the colony would be resupplied.
Tradesmen:
_____________________________________________________________________________________
_____________________________________________________________________________________
Goods and supplies:
_____________________________________________________________________________________
_____________________________________________________________________________________
Now read Hakluyt’s “Discourse of Western Planting and compare the list of provisions and people that he suggests are necessary to your lists. Answer the following:
1.
What was similar between your list and Hakluyt’s?
____________________________________________________________________________
____________________________________________________________________________
2.
What was different between the two lists?
______________________________________________________________________________
_____________________________________________________________________________
3.
What did you find on his list that was unexpected?
Explain._______________________________________________________________________
______________________________________________________________________________

Day 2: Have students brainstorm ways in which you could finance a colony.
List them on the board. Hand out excerpts from David Price’s “Love and Hate in
Jamestown”, pages 3 and 4. Students will record how Jamestown Colony was financed according to the text.
Teacher defines a corporation. In addition, the teacher explains that limited liability means that you can only lose as much as you put in to a financial venture.
Ask the following:
1.
What is the advantage of creating a corporation verses owning a private company?
2.
What is a disadvantage of creating a corporation?
Simulation:
Tell the students that we will now be simulating the investment in the Virginia Company.
Envelopes are passed out containing various amounts of English money ranging from 2 pounds to thousands of pounds. Remind students that each share costs 12 pounds. Students will quickly realize that many will not have enough money to purchase one share, but there are other options. Define “indentured servant” and have students make decisions on what they plan to do.
Make a list on the board describing the final tally and the cost for each student.
The teacher then summarizes the results of the actual Jamestown Colony investment:
1.
Most of the investors/indentured servants would die in the first couple of years in Jamestown.
2.
No one ever realized a profit before the company’s charter was revoked by the king in 1624.
Assessment: Exit Ticket- List two advantages and two disadvantages of creating a corporation compared to owning a private company.

Extension: Have students research modern corporations examining yearly profits, stock prices and return rates for investors.