The correct answer is Neither 1 nor 2. Key Points Prokaryotic cells are cells without a nucleus. Prokaryotic cells are found in single-celled organisms, such as bacteria. Hence, statement 2 is incorrect. Organisms with prokaryotic cells are called prokaryotes. They were the first type of organisms to evolve and are still the most common organisms today. Organisms that lack a membrane-bound nucleus are called prokaryotes. A prokaryotic cell does not contain a well-defined nucleus. The DNA in prokaryotic cells is in the cytoplasm rather than enclosed within a nuclear membrane. The genetic material is present on a single chromosome. All prokaryotes have a cell wall surrounding the cell membrane except in mycoplasma. The nucleolus is absent in prokaryotic cells. The fluid matrix filling the prokaryotic cell is the cytoplasm. Membrane-bound cell organelles are absent in prokaryotes. In prokaryotes, cell division takes place by fission or budding. Blue-green algae, bacteria, and mycoplasma are examples of prokaryotes. Eukaryotic cells are cells that contain a nucleus. Eukaryotic cells are usually larger than prokaryotic cells, and they are found mainly in multicellular organisms. Hence, statement 1 is incorrect. Eukaryotic cells also contain other organelles besides the nucleus. Eukaryotic cells have a nucleus enclosed within the nuclear membrane and form large and complex organisms. They can maintain different environments in a single cell that allows them to carry out various metabolic reactions. This helps them grow many times larger than the prokaryotic cells. Since eukaryotic cells typically have multiple linear chromosomes, capped with telomeres, eukaryotic DNA replication and cell division (mitosis and meiosis) are a bit more complicated. Protozoa, fungi, plants, and animals all have eukaryotic cells.