When acquiring financing for its investment in net working capital (NWC), a firm must consider several factors. In this context, which of the following statements is true?

a) Under the moderately conservative approach to financing NWC, the portion financed with long-term debt provides excess funds during part of the year, which is intended to provide protection against liquidity risk.

b) To reduce risk, the firm should always ensure that the term of the borrowing is longer than the useful life of the asset.

c) While there are several advantages to a firm associated with factoring its accounts receivable without recourse, one shortcoming is that the firm remains exposed to the risk of bad debt.

d) Total current assets required at the seasonal high of the business cycle are called seasonal temporary current assets.