Prokaryotic cells lack a nucleus and membrane-bound organelles. They have a cell wall composed of peptidoglycan and a plasma membrane. Gram-positive bacteria have a thick cell wall primarily of peptidoglycan, while Gram-negative bacteria have a thin cell wall surrounded by an outer membrane containing lipopolysaccharides and lipoproteins. Prokaryotes reproduce asexually through binary fission and can also exchange genetic material through transformation, transduction, and conjugation. The plasma membrane is selectively permeable and surrounds the prokaryotic cell.