For each number, we will find its prime factorization and determine if it is a prime or composite number. A prime number has exactly two distinct positive divisors: 1 and itself. A composite number

Step 1: For each number, we will find its prime factorization and determine if it is a prime or composite number. A prime number has exactly two distinct positive divisors: 1 and itself. A composite number has more than two distinct positive divisors.

1. 98 $$98 = 2 \times 49 = 2 \times 7^2$$ This is a composite number. $$\boxed{98 = 2 \times 7^2 \text{ (Composite)}}$$
2. 40 $$40 = 2 \times 20 = 2^2 \times 10 = 2^3 \times 5$$