Final answer:
Transformation is the process by which bacteria take up exogenous DNA from their environment and may incorporate it into their genome, which is different from conjugation and transduction.
Step-by-step explanation:
Once an exogenous (foreign) piece of DNA is in the bacterial cell, it is incorporated into the bacterial genome through transformation. In transformation, the prokaryote takes up DNA directly from its environment, which may be shed by other prokaryotes. This DNA can be in the form of pieces that can recombine with the host genome, potentially resulting in pathogenic traits if the DNA is from a pathogen. It is distinct from conjugation, where DNA is transferred between two bacterial cells via a pilus, and from transduction, in which bacteriophages carry DNA from one bacterium to another.