Final answer:
Intracellular receptors function by regulating gene transcription when a lipid-soluble hormone binds to them, leading to changes in protein production and long-term cellular activities.
Step-by-step explanation:
One function of intracellular receptors such as an activated hormone-receptor complex is to modulate gene transcription. When a lipid-soluble hormone diffuses across a cell membrane, it binds to these intracellular receptors, commonly found in the cytoplasm or within the cell's nucleus. This complex then interacts with the cell's DNA to upregulate or downregulate the transcription of specific genes, leading to long-term changes in cellular functions by inducing production of certain proteins.