Step 1: Understanding the Concept:
Genetic engineering involves manipulating the DNA of an organism to introduce new traits. Scientists prefer organisms that reproduce quickly and have simple genetic structures.
Step 2: Detailed Explanation:
Bacteria (especially \textit{E. coli}) are widely used because they grow rapidly, their genome is well-understood, and they contain plasmids (circular DNA) that can be easily manipulated to carry foreign genes, such as the gene for human insulin.
Step 3: Final Answer:
The correct option is (b).