Question
What is "Flipping" in the context of
entrepreneurship?Solution
In the context of entrepreneurship, "Flipping" refers to the process of transferring the entire ownership of an Indian company to an overseas entity, accompanied by a transfer of all intellectual property (IP) and all data hitherto owned by the Indian company. It effectively transforms an Indian company into a 100% subsidiary of a foreign entity, with the founders and investors retaining the same ownership via the foreign entity, having swapped all shares. This process is typically driven by commercial, taxation and personal preferences of founders and investors. Hence, option B is correct.
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