Step 1: Recall the principle of Time Division Multiplexing (TDM).
In TDM, multiple signals share the same communication channel by transmitting in different time slots.
Step 2: Identify the correct statement.
Each signal is allotted the entire channel bandwidth, but only for its assigned time interval.
Hence,
\[
\boxed{\text{Each signal occupies the entire bandwidth for a short time}.}
\]
Therefore,
\[
\boxed{(B)}
\]
is the correct answer.