Cholesterol is an example of sterol (steroid) which is a type of lipid.
Lipid may be defined as a group of organic compounds which are insoluble in water and readily soluble in nonpolar solvents like benzene, chloroform, or ether.
Cholesterol acts as a precursor of the biosynthesis of all steroid hormones and bile salts. It is biosynthesized by all animal cells and considers an essential structural component of the animal cell membrane.
Therefore, it is well described above.
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