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Jim may not be elected CEO by the board because he does not meet their standards.
OR
Jim may not be elected CEO by the board because he does not meet its standards.
Which one is better and why..???
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I agree, although "their" does refer back to "the board", it is incorrect.
While "the board" is a collection of individual people, the word groups them all together in a singular collection. When you have a single thing comprised of smaller parts, it can be confusing, but the correct pronoun is "its".
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