Would it be wise for a young company that is growing quickly but still hasn't achieved profitability to attempt to issue bonds as a way to expand its working capital?

No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.

Explanation:

Bonds are the cheapest way to raise capital, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons. It would be basically a Ponzi scheme since the company would have to use the proceeds from the bond issuance in order to pay interests, but what happens when they ran out of money?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; hazards;