We will first address the common conundrum of its versus it’s.
Its (I-T-S, no apostrophe) is a possessive pronoun. The word is similar to his, hers, and ours, except that its refers to an object or animal showing possession, not a person.
The bird broke its wing when it flew into a window.
On the other hand, it’s is a contraction for it is.
It’s clear that the board does not understand the policy.
This could also be written without the contraction, as such:
It is clear that the board does not understand the policy.
The easiest way to determine whether its or it’s is correct in any given situation is to see if you can substitute “it is” in place of the term. If the sentence makes sense with “it is,” then it’s with an apostrophe is correct; if not, then its is correct. Here are two examples:
After the board altered its policy, liquidity increased.
[Substituting “it is” doesn’t make sense, so “its” is correct.]
It’s going to take several years for the economy to recover.
[Substituting “it is” makes sense, so “it’s” is correct.]
At times, writers also confuse the contraction who’s with whose.
Who’s is a contraction of who is that appears in questions. Here is an example:
Who is on first?
Who’s on first?
Alternately, whose is the possessive form of who or which.
Stalin, whose regime murdered thousands of political prisoners, is considered a tyrant even by the Russian people.
Here, whose is referring to Stalin and is possessing the word regime.
Similar to figuring out whether its or it’s is correct, you can also replace who’s with who is to determine whether or not it’s correct. If the sentence makes sense with “who is,” then who’s with an apostrophe is correct; if not, then whose is correct. Here are two examples:
Who’s in charge of the audit?
Who is in charge of the audit?
[Substituting “who is” makes sense, so this is correct.]
Who’s chair is that?
Who is chair is that?
[Substituting “who is” does not make sense, so whose is correct.]
Now that we’ve reviewed contractions, it’s important to note that in business writing, it is best NOT to use contractions. Contractions are generally reserved for informal writing only.