Final answer:
The breakdown and absorption of chyme into vitamins and other nutrients occur in the small intestine, aided by digestive enzymes and bile, with an increased surface area provided by microvilli and villi.
Step-by-step explanation:
Chyme that moves from the stomach to the small intestine is broken down by specific digestive enzymes and bile to allow absorption of nutrients. Enzymes from the pancreas and bile from the liver emulsify fats and neutralize the acidic chyme for optimal enzyme activity. The microvilli and villi in the small intestine increase the surface area for absorption, allowing nutrients like fats, carbohydrates, proteins, vitamins, and minerals to pass into the bloodstream. Notably, bile salts and vitamin B12 are specifically absorbed in the terminal ileum of the small intestine.