At first it was agreed that all organisms should be classified into two kingdoms, the plant and animal kingdom. But until recently it was discovered that all organisms fall into two natural groups known as prokaryotes and eukaryotes. These two terms refer to differences in the location of DNA.
Prokaryotes:- In these organisms cells lack true nuclei because the DNA is not enclosed by a nuclear membrane and just lies freely in the cell membrane.
Eukaryotes:- The cells of these organisms are formed from prokaryotes but they do have a true nuclei.
The Table below shows the differences between prokaryote and eukaryote.