Question : Select the most appropriate option that can substitute the underlined segment in the given sentence. If there is no need to substitute it, select 'No substitution'.
The company decided to sell their stake in their subsidiary, because it was under massive debts.
Option 1: sell their stake in its subsidiary
Option 2: No substitution
Option 3: sell its stake in their subsidiary
Option 4: sell its stake in its subsidiary
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Correct Answer: sell its stake in its subsidiary
Solution : The correct choice is the fourth option.
The correct possessive pronoun should be used in accordance with the singularity or plurality of the subject. This change maintains consistency in possessive pronouns by using its to refer to the company and its subsidiary because the company is a singular noun and thus will be followed by the singular possessive pronoun .
Therefore, the correct sentence should be: "The company decided to sell its stake in its subsidiary because it was under massive debts."
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