Final answer:
Cholesterol increases permeability for small polar molecules and Ca2+ ions and buffers membrane fluidity. It is also found in abundance in prokaryotic cell membranes.
Step-by-step explanation:
Cholesterol has several functions in the cell membrane. It can increase permeability for small polar molecules and Ca₂⁺ ions. Cholesterol also acts as a buffer for membrane fluidity, increasing it at low temperatures and decreasing it at high temperatures. Furthermore, cholesterol is found in abundance in prokaryotic cell membranes.