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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 first singular subject.
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 plural subject that is closer.

2 Answers

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Answer:

This sentence has a mixed compound subject connected by or, so the verb agrees with the plural subject that is closer.

Step-by-step explanation:

User UncleCheese
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The rule that best explains why the verb in the given sentence is correct, is: This sentence has a mixed compound subject connected by or, so the verb agrees with the plural subject that is closer. This rule is also applied when using neither/nor. The form of the verb should agree and depend on the subject close to it. 
User Maarvd
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