An executive session may be held to:

An executive session is a private meeting held by the board of directors that is not open to the general membership. This type of session is typically conducted for specific purposes that require confidentiality. Evaluating the performance of the community manager is a personal and sensitive matter. Such assessments could involve discussions about job performance, salary, and personal matters, which can be inappropriate for public discussion. Therefore, the confidentiality of an executive session is crucial in maintaining the privacy and respect of the individuals involved.

The other choices involve actions that generally are expected to be made in a transparent manner. Approving the annual budget, opening bids, and approving contracts typically require input and oversight from the community members. These processes involve financial and operational decisions that benefit from community involvement, ensuring transparency and accountability in the management of the community association.