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A session bean is a short-lived object containing business methods that can be executed by a client. When a client wants to execute a method in a session bean, the EJB container creates an instance of that session bean. The lifetime of the session bean is equivalent to the client session.
In the example, the EJB name you specify will become the name of the session bean. You will create a stateless session bean that implements a HelloWorld business method, hosted in an EJB container.
A stateless session bean does not maintain state across business method calls. This means any instance of stateless beans can be used by any client at any time. A stateful session bean is associated with a specific client, and maintains state across multiple method invocations made by the same client.