3. What is meant by a differentiated cell? How do cells become differentiated? 4. What are the 3 basic principles of cell theory? Solution 3. What is meant by a differentiated cell? How do cells become differentiated? Differentiation is a process by which an unspecialized cell specializes to do particular function. Example: Cells of bone marrow differentiate into Red blood cells. Generally certain differentiation factors trigger differential gene expression (particular sets of genes are turned on), this provides cell its special characteristics. 4. What are the 3 basic principles of cell theory? All living organisms are composed of one or more cell Cells are the basic unit of structure and organization of all living organisms Cells arise only from previously existing cells, with cells passing copies of their genetic material onto their daughter cells.