SMS, by definition, is a single-recipient message format. You cannot send a single SMS message to multiple recipients for the simple reason that there is no room in the fixed-size message block for the extra data. Some phones /OS's get around this limitation by allowing you to enter multiple recipients but then actually transmitting one individual SMS message to each recipient in the list.
The Nexus 4 - along with many other phones - gives you the option to send to multiple recipients using MMS instead which has no practical limitations on the number of recipients or type and size of attached data. For the Nexus 4 / Android 4.2, go to Messaging -> Menu -> Group Messaging: "Use MMS to send a single message when there are multiple recipients"
As far as receiving "group" messages with the N4, my boss sent a text to several of his reports the other morning, myself included. It appears on my phone as "Firstname Lastname, +1 xxx-x..." . If I tap Menu -> Group participants, I see a list of all the persons who the message was sent to either by name & phone number (for those in my address book) or by number only. Viewing the message itself, at the bottom right of the screen alongside the text entry field, the Send icon has "MMS" directly above it. If I respond to this message, it will be received by my boss and all the other original recipients. Curiously, I don't see an easy way around this; I cannot respond directly and only to my boss. It seems that to do so I would have to start a separate SMS thread.