Q1. Who granted the original charter to the East India Company, and in what year?
- William III in 1688
- Charles II in 1660
- Queen Elizabeth I in 1600
- James II in 1675
Correct Option: 3. Queen Elizabeth I in 1600.
Explanation: The Charter of 1600 was granted by Queen Elizabeth I, giving the East India Company exclusive rights to trade east of the Cape of Good Hope for 15 years.
Q2. What was the governing body of the East India Company originally called?
- Court of Directors
- Board of Directors
- Court of Governors
- Chamber of Commerce
Correct Option: 1. Court of Directors.
Explanation: The managing committee of the East India Company was known as the “Court of Directors,” consisting of a Governor, Deputy-Governor, and 24 elected members.
Q3. Why did many English merchants oppose the East India Company in its early years?
- It was mismanaged
- It paid low taxes
- It was a closed monopoly
- It used foreign ships
Correct Option: 3. It was a closed monopoly.
Explanation: The Company was a closed corporation, allowing only its members to trade with the East. Other merchants, known as “Interlopers” or “Free Merchants,” opposed this monopoly.
Q4. How did East India Company gain military and judicial powers in India?
- By conquering local kingdoms
- Via a decision of the Indian Parliament
- Through a treaty with the French
- Through royal Charters from Charles II
Correct Option: 4. Through royal Charters from Charles II.
Explanation: Between 1609 and 1676, the Company gave loans to Charles II, who in return granted Charters allowing the Company to build forts, raise troops, and administer justice.
Q5. What happened in 1694 that challenged the Company’s monopoly?
- A Dutch invasion
- Death of Charles II
- A House of Commons resolution
- Merger with the French Company
Correct Option: 3. A House of Commons resolution.
Explanation: In 1694, the House of Commons passed a resolution stating all English subjects had equal rights to trade in the East Indies, undermining the Company’s monopoly.