Which of the following statements about traditional business communit…

Which of the following statements about traditional business communities are correct?

(A) Community institutions and ethos give rise to a different organisation of business.
(B) 'Vaisya' is often a claimed or aspired status rather than a fixed identity.
(C) In the colonial period, the long-distance salt trade was controlled by the Bohras.
(D) Banias of South India are a 'Vaisya' trading community.
(E) Traditional business communities include the Parsis, Sindhis and Jains.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A, B and E only

(A) Community institutions and ethos give rise to a different organisation of business. — Correct. The particular nature of community institutions and ethos gives rise to a different organisation and practice of business in each community.

(B) 'Vaisya' is often a claimed or aspired status rather than a fixed identity. — Correct. Like the other varnas, 'Vaisya' is often a status that is claimed or aspired to. Caste groups that enter trade tend to claim it in the process of upward mobility.

(C) In the colonial period, the long-distance salt trade was controlled by the Bohras. — Incorrect. The long-distance salt trade of the colonial period was controlled by the Banjaras, a marginalised tribal group. The Bohras are a business community with a distinct religious identity.

(D) Banias of South India are a 'Vaisya' trading community. — Incorrect. The 'Vaisya' community whose traditional occupation has long been trade is the banias of North India.

(E) Traditional business communities include the Parsis, Sindhis and Jains. — Correct. Traditional business communities include not only Vaisyas but also groups with distinct religious or community identities, such as the Parsis, Sindhis and Jains, and the Bohras.

NCERT (2026-27): “Social Organisation of Markets – ‘Traditional Business Communities’ …
However, like the other varnas, ‘Vaisya’ is often a status that is claimed or aspired to rather than a fixed identity or social status. Although there are ‘Vaisya’ communities (such as banias in North India), whose traditional occupation has been trade or commerce for a long time, there are some caste groups that have entered into trade. Such groups tend to acquire or claim ‘Vaisya’ status in the process of upward mobility. Like the history of all caste communities, in most cases there is a complex relationonship between caste status or identity, and caste practices, including occupation. The ‘traditional business communities’ in India include not only ‘Vaisyas’, but also other groups with distinctive religious or other community identities, such as the Parsis, Sindhis, Bohras, or Jains. Merchant communities did not always have a high status in society; for instance, during the colonial period the long-distance trade in salt was controlled by a marginalised ‘tribal’ group, the Banjaras. In each case, the particular nature of community institutions and ethos gives rise to a different organisation and practice of business.”