Question1. You run a clothing shop and employ many salespeople. A friend comes in and asks you a favor. He has selected a $900 suit off the rack and wishes a one-time 50% 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.

Question2. Because of past abuses, last week you put out an edict that the company copier cannot be used for personal purposes. Your son's Cub Scout leader just called you and asked if you could make 50 copies of an informational sheet for the Scout fund-raising project. How do you respond?

Question3. You are a manager in an electronics firm, and you have been secretly planning to start your own competing company. One of the young engineers you were going to ask to join your new startup bursts excitedly into your office, exclaiming he has just been promoted to engineering manager. How should you respond?

Question4. You are taking a certification exam next week that will allow your business to qualify for bidding on large municipal projects. Because of the press of business, you have been unable to study for the exam. At a local pub after work, a friend offers you a copy of the exam, which he "borrowed" from the examiner's office. What should you do?

Question5. You have a large order of new products ready to deliver to a key customer. You have just discovered a flaw in the manufacturing process. Even though the product looks OK, it will not meet a critical performance specification and will probably malfunction in the field. However, your company has severe cash-flow problems and you urgently need the cash from this order. If you ship, you will have the cash from your customer before the problem is discovered. What action do you take?

Question6. Your company is bidding on a large volume of widgets; the competition between you and Acme Co. is fierce. At noon, you stop by the office of the customer's purchasing agent to clarify a point before submitting your bid by the 4 p.m. deadline. After you ask your question, the purchasing agent leaves the room to get the information you requested. While she is gone, you notice a copy of Acme's bid lying out in plain sight on top of her desk. What do you do?