2, it talks about compound nouns relating to locations. It says, the first part of the noun refers to location and the second part refers to the thing in this location. (As I am reading a translated version of this book, I can't figure out what's the original words the author made.
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CliveI think 'personal' is an adjective, right? Yes. It's OK for compound to be 'adjective + verb'.
Does 'personal' refer to a location? Or is it an error of the book? 'Personal computer' is certainly a compoun noun, but I don't see how it can be considered as referring to 'location'.