Which rule best explains why the verb in the following sentence is correct? The owner or the business managers need to prepare the annual budget. A plural indefinite pronoun comes before the compound subject, so a plural verb is used. This sentence has a mixed compound subject connected by or, so the verb agrees with the plural subject that is closer. Both parts of the compound subject are plural, so a plural verb is used. This sentence has a mixed compound subject connected by or, so the verb agrees with the first singular subject.