1. You run a clothing store and employ several salespeople. A friend comes in and asks you a favor. He has selected a $900 suit off the rack and wants a one-time 50 percent discount. How should you respond?

If you acquiesce, word will spread to others that your business is cut-rate; more customers will expect sizable discounts. Furthermore, if your salespeople witness you acceding to this request, they might be inclined to make special offers to their own friends. Either way, your bottom line will be significantly affected.