Final answer:
The scale of asset concealment in bankruptcy depends on individual cases; businesses may have more complex structures, potentially enabling larger-scale concealment. Firms file for bankruptcy but continue operating to reorganize debt under protection. The choice between bank borrowing and issuing bonds depends on the firm's size and financial needs.
Step-by-step explanation:
The statement regarding the concealment of assets being more prevalent among individuals filing for bankruptcy than businesses is neither universally true nor false and depends on various situations and data that are not specified in the question. Concealing assets can happen in both individual and business bankruptcy cases, but the dynamics and scale can differ due to the complexity of business operations and the scrutiny they face. However, businesses do often have more complex asset structures which might make concealment easier to occur on a larger scale than with individuals.
Regarding why many firms in the United States file for bankruptcy and continue operating, the reason is that bankruptcy protection provides them an opportunity to reorganize debts and create a manageable plan to pay creditors over time. This process, often done through Chapter 11 bankruptcy, allows companies to keep their doors open, retain employees, and work towards financial stability without the immediate pressure of shutting down.
With respect to bank borrowing versus issuing bonds, smaller firms often find bank loans more suitable due to the personalized nature of the service. Banks can closely monitor the firm's financials, whereas larger firms might issue bonds to raise capital for significant investments, to refinance old debt, or to fund acquisitions. The choice between bank borrowing and bonds is not absolute, and varies based on the firm's size, known presence in the market, and financial needs.