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TOEIC Reading 5 Exercisee 7

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Question: 
O:8:"stdClass":2:{s:8:"question";s:121:"MJ Foodville, which had ______ headquarters in Singapore, has appointed Colton Choi as the new head of the research team.";s:7:"choices";a:4:{i:0;s:2:"it";i:1;s:3:"its";i:2;s:6:"itself";i:3;s:4:"its'";}}
Answer: 
b
TOEIC Reading 5 Category: 
content access: 
2
answer explanation: 

<p>MJ Foodville, which had <u>its</u> headquarters in Singapore, has appointed Colton Choi as the new head of the research team.</p>
<p>The correct answer is <b>(B) its</b>.</p>
<p>In this sentence, "MJ Foodville" is a singular noun and is referred to as a possessive noun. To show possession, we use the possessive pronoun "its" (not "it's" which is a contraction for "it is" or "it has"). Therefore, the correct choice is "its" to indicate that the headquarters belongs to MJ Foodville.</p>