Final answer:
Lipid-soluble hormones can enter cells and bind to DNA to regulate gene transcription, while water-soluble hormones bind to receptors on the cell surface and trigger signaling pathways.
Step-by-step explanation:
Lipid-derived (soluble) hormones can enter the cell by diffusing across the plasma membrane and binding to DNA to regulate gene transcription and to change the cell's activities by inducing the production of proteins that affect, in general, the long-term structure and function of the cell. Lipid-insoluble hormones bind to receptors on the plasma membrane surface and trigger a signaling pathway to change the cell's activities by inducing the production of various cell products that affect the cell in the short term. The hormone is called a first messenger and the cellular component is called a second messenger. G-proteins activate the second messenger (cyclic AMP), triggering the cellular response. Response to hormone binding is amplified as the signaling pathway progresses. Cellular responses to hormones include the production of proteins and enzymes and altered membrane permeability.