True or false theocracy can co exist with monarchy

Why might the spanish government have approved of the encomienda system? a the system allowed for fair treatment of all under it, leading to a happy and prosperous colony. b the system used natives as slaves which meant the government was able to maximize their profit of exported goods. c the system allowed for mostly profitable trade within the different colonies. d the system was a great example of how to successfully run a colony, making spain a world power.