it's or its

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Many people confuse these words because they associate apostrophes with possessives. In fact, possessive nouns require apostrophes, but possessive pronouns do not.

" It's" and " its" are pronouns. Nouns, remember, are the names of
people, places, and things. Pronouns are words that stand in for nouns.

" It's" is a contraction of " it is." It's always good to have lots of chocolate.

" Its" is a possessive pronoun. If management doesn't follow its own policies, what can we expect from the employees?