While it does indicate possession, it still functions as a noun in the sentence. It acts as the subject, object, or complement of the verb.
Here's why:
* It's a noun with an added function: It's a noun that shows ownership or relationship.
* It's not an adjective: While it modifies another noun, it doesn't describe the noun's qualities.
Examples:
* The dog's bone: "Dog's" is the possessive noun, functioning as the subject of the sentence.
* John's car: "John's" is the possessive noun, acting as the object of the verb "is."
Key takeaway: A possessive noun is a noun with a special role to show possession, but it retains its noun status in the sentence.