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Despite its poor performance, the company’s new product is still in market.
Ambiguity: Here its can refer to both company and products. I think this is wrong.
2) Despite its poor performance, the company’s new product is still in market and it is earning more than its competitors products.
Ambiguity: Here its can refer to both company and product so I think there is ambiguity so it is wrong. it on the other hand can refer to only product and is fine here. its is referring to company and is fine. My question here is that the whole statement is correct as the its is referring correctly and it will make its correct as they are same pronoun.
3) Is it correct to think that a pronoun should always refer to the same noun everywhere in the sentence?
4) Is it correct to think that a class of pronoun should always refer to the same noun everywhere in the sentence?
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I think you are asking too general questions here. you should look for the meaning too. Such as it can not talk about the new products's past performance. after all its new. hope it helped.
Despite its poor performance, the company’s new product is still in market. Ambiguity: Here its can refer to both company and products. I think this is wrong.
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It's is referring to product only. Not the company. So there is no pronoun ambiguity in this sentence. You can remove the possessive noun(company's) in front of the product and you'll clearly see that its is modifying products and not the company.
Here is an ambiguous statement: Despite its poor performance, the company and it's new product are still in the market. Here, there is definitely an ambiguity. It can refer to either company or the new product.
Pronoun ambiguity is a tricky subject on the GMAT. Here's a couple articles I wrote about it that should cover some of what you're wondering about here:
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