Pronouns referring to possessive cases

[nm11_13]

Hello,

This question is in regards to a concept tested on OG Verbal 13 #92. As per forum rules I cannot post the question, thus I have constructed an example sentence that mirrors the logic.

The flamboyant friends that are the party's hosts for the remainder of its time stated that everyone must leave at 11pm.

Question 1: In this instance 'its' refers to 'party', however as per previous OG problems and the MGMAT SC guide pg. 72 this is contradictory:

"However, you should note that nouns in the possessive case (with 's or s') are often poor antecedents."

"Wrong: The board is investigating several executives' compensation packages in order to determine how much may have been improperly awarded to them."

Please advise?
Other official questions I have studied -- I would venture to say all -- have avoided this possessive reference.

Question 2: Here The flamboyant friends is a plural subject whilst using 'the'

I know this acceptable in some cases, such as 'The friends are going to the zoo" But wouldn't it be better served to just use 'flamboyant friends' as other options in the answer choices do?
(I'm thinking 'the' number => singular vs 'a' number which is plural)

(There are other problems with these answer choices but this construction along with the issue discussed in question 1 led me awry in my splits)

Thanks!

[RonPurewal]

here is a 100% complete treatment of this:
post46683.html#p46683

note the red part in that post: you basically don't have to worry about this.