Answer and explanation

Correct answer: A. The company announced that its profits had risen.

  1. Step 1: 'Its' shows possession; 'it's' means 'it is'.
  2. Step 2: Here the profits belong to the company.
Answer
The company announced that its profits had risen.
Why not the others: 'It's' and 'it is' do not fit; 'its'' does not exist.

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