Cell theory states that all living things are composed of cells, cells are the basic unit of structure and function, and new cells are produced from existing cells. Eukaryotic cells contain membrane-bound organelles and a nucleus that houses the genetic material. Prokaryotic cells lack internal membranes and organelles. The endomembrane system, including the ER, Golgi apparatus, vesicles, and lysosomes, compartmentalizes eukaryotic cells. Mitochondria and chloroplasts contain their own DNA and likely evolved from endosymbiotic bacteria.