I would argue that if the flag is true in regards to a business, the flag should be applicable to agents or employees of the businesses in most circumstances.
If someone were to resign from said business, and they did not play a role in the underlying facts that cause the flag to be accurate, the flag would probably be no longer appropriate for the now former employee.
There might be other circumstances in which a flag might not be appropriate, for example someone being hired by a business to clean up the mess surrounding the scam that resulted in the flag.
I gather that if someone creates a flag and I support the flag, the person does not need to have scammed me as well, I just have to believe the evidence the flagger presented. Correct? Also, if exchange xyz makes an exit scam, is that considered one incident that can only be flagged once? Or can each victim make their own flag?
Each person can create a flag, however it will probably be redundant to to create more than a handful.
Also, if a person exit scammed, they generally will not continue trying to trade. If they never login again, getting the person flagged is probably redundant, if they try to continue trading, they should be flagged.