Final answer:
The sentence that correctly uses a possessive noun is 'All five bakers' pies are done' since it properly reflects plural possession by placing the apostrophe after the 's' in 'bakers', indicating that the pies belong to all five bakers.
Step-by-step explanation:
The question is asking to identify which sentence correctly uses a possessive noun. A possessive noun shows ownership, and in English, we typically add an apostrophe and -s ('s) for singular nouns, and just an apostrophe (') for plural nouns ending in -s. Reviewing the given sentences:
All of my aunts' tell funny stories about Mom. - This is incorrect because 'aunts' suggests that the possessive is plural, but it should not have an apostrophe since the noun 'aunts' is not followed by a noun they possess.
All five bakers' pies are done. - This is correct because the pies belong to the five bakers, showing plural possession.
Several dogs collars' are blue. - This is incorrect. It should be dogs' collars, with the apostrophe after the 's' to show that the collars belong to multiple dogs.
Most of this towns' restaurants are open. - This is incorrect. If the town is singular, it should be town's; if it is intended as a plural possession, the word should be 'towns' without the apostrophe.
The sentence that correctly uses a possessive noun is 'All five bakers' pies are done.' because it shows that the pies belong to the bakers in a plural possessive form.