Liquidity risk pertains to a business's ability to:

Liquidity risk specifically refers to a business's challenge in meeting its short-term financial obligations due to the lack of available liquid assets. When a business faces liquidity risk, it may struggle to find enough funds to pay immediate bills or obligations such as payroll, rent, or supplier costs, which are critical for its day-to-day operations. This type of risk emphasizes the importance of having assets that can be quickly converted into cash without significant loss of value.

The other options do not focus on the immediate financial obligations that characterize liquidity risk. Gathering assets over time pertains more to overall capital accumulation rather than the immediate availability of cash. Converting investments into long-term profits speaks to the profitability aspect of a business, which is separate from the concerns about cash flow and liquidity. Maintaining profitability despite losses relates to the operational performance of a business but does not address the issue of being able to pay short-term debts as they arise. Thus, the essence of liquidity risk is best captured by the need for immediate funds to fulfill financial commitments.