Final answer:
Bile salts emulsify lipids in the small intestine, breaking them down into smaller globules called micelles.
Step-by-step explanation:
Lipids, or fats, are emulsified by bile salts in the small intestine. Bile, which is produced by the liver and stored in the gallbladder, aids in the digestion of lipids by breaking down large globules of food lipids into smaller ones, called micelles. These micelles provide a larger surface area for the enzyme lipase to act upon and facilitate the further digestion of fats.