What term describes a system where private individuals are granted authority to govern a colony and profit from it?

• A. Royal Charter
• B. Proprietary Government
• C. Direct Rule
• D. Mercantilism

Answer: (B)

Proprietary government describes a system where a private individual is granted authority to govern a colony and profit from it. In this setup the Crown gives land and governing rights to a proprietor, who then appoints officials, enforces laws, and controls land and resources, with the profits going to that private owner. This arrangement centers power and wealth in a private owner rather than in a crown-appointed administrator. It's why Maryland and Pennsylvania are classic examples. Mercantilism is an economic idea about trade and wealth, not who governs; direct rule would be the crown governing directly, not a private proprietor; and a royal charter is simply the document that can authorize such governance, but the defining feature here is the private ownership and governing authority.