Business lowers flag (7)
I believe the answer is:
colours
'flag' is the definition.
(colours is a kind of flag)
'business lowers' is the wordplay.
'business' becomes 'co' (short for company).
'lowers' becomes 'lours' ('lour' can be a synonym of 'lower').
'co'+'lours'='COLOURS'
(Other definitions for colours that I've seen before include "Hues, tints" , "flag" , "Red and blue" , "Shades" .)