The bankruptcy of the Virginia Company of Plymouth in 1620 was caused by a failed attempt to establish Fort St. George in Maine.

• A. Founding Jamestown
• B. Trading with the Powhatan
• C. Fort St. George in Maine
• D. Planting tobacco

Answer: (C)

A key idea here is how a failed colonial venture could ruin a joint-stock company. The Virginia Company of Plymouth aimed to establish a northern colony and built Fort St. George at Sagadahoc, Maine, in 1607 as part of the Popham/Wents settlement effort. That venture proved unsustainable—harsh conditions, scarce supplies, and limited support meant the settlement lasted only a short time and resources were lost rather than returned. With no profits and ongoing costs, investors lost confidence and the company failed financially, leading to its dissolution around 1620. The other options don’t fit because Jamestown and its tobacco economy were tied to a different company (the Virginia Company of London), and the events there (trade with the Powhatan or tobacco cultivation) were not the cause of Plymouth’s bankruptcy. Fort St. George in Maine is the direct failure that weakened Plymouth’s finances.