What could be considered a liquidity problem?

A liquidity problem arises when an entity, such as a company, does not have enough cash or liquid assets to meet its short-term obligations as they come due. This is crucial for day-to-day operations, as companies need to ensure they can pay suppliers, employees, or other creditors within the required timeframe. When a company lacks sufficient cash resources, it can experience difficulties that may lead to delays in payments and potentially harm its reputation and creditworthiness.

The other choices relate to different aspects of financial management or market conditions but do not directly address immediate cash flow issues. For instance, having too many fixed assets can limit a company’s liquidity, but it is not a liquidity problem by itself. High interest rates at a bank might affect borrowing costs, but they don't indicate a liquidity problem pertinent to the company’s cash on hand. Similarly, extensive long-term investments might indicate a strategy focused on growth but can lead to liquidity issues only if cash is not managed effectively.